Pushpay shares sold at 8.5% discount in bookbuild, gain in early trading
By Sophie Boot
July 13 (BusinessDesk) - Pushpay Holdings shares are trading higher this morning following the close of a $25 million
bookbuild where they were sold at an 8.5 percent discount.
The mobile app developer announced the private placement yesterday in its first quarter update, though it didn't give
details about the number of shares sold or the price. Disclosure notices published to the NZX today show shares were
sold at $1.51 apiece, compared to the $1.65 they closed at on Tuesday, and 11 percent lower than the 90-day average of
$1.697.
The stock, which was halted yesterday, has risen in early trading, up 2.4 percent to $1.69. Ord Minnett, one of the
joint lead managers for the placement, has given it a target price of $2.74 and regards it as a strong buy, according to
Reuters data.
The company yesterday also raised its annualised committed monthly revenue (ACMR) target to US$100 million, announced
plans to list in the US within the next 36 months, and gave guidance of US$70 million in revenue for the 2018 financial
year, more than double 2017's US$34 million.
Pushpay's app has gained traction in the US faith sector, where its services are used by 2 percent of the estimated
314,000 churches. Over the past year, the company has lifted its customer numbers and is getting more revenue from each
customer. It had 7,128 customers as of June 30, up 59 percent from a year earlier, with average revenue per customer up
to US$732 per month from US$511 per month in 2016.
Chief executive and co-founder Chris Heaslip said the US listing would increase liquidity and give the company better
access to capital, while the $25 million raised would "enable Pushpay to invest more aggressively in its targeted
account base and field sales strategy over the next 18 months."
(BusinessDesk)