Shareholders rush to Iress after OneVue deal

In a statement to the market on Tuesday, Iress said it had completed a $150 million placement that was announced on Monday, at the same time the company said it had agreed to acquire 100 per cent of the shares in platform provider OneVue. 

The group said shares in the capital raise were offered at $10.42 per share and that they had “generated significant interest” from sophisticated and institutional investors.

The proceeds of the placement will be used to further strengthen Iress’ balance sheet, provide flexibility to respond to opportunities in the current environment, and to partly fund the proposed acquisition of OneVue announced yesterday,” Iress chief executive Andrew Walsh said. 

“We are pleased with the level of shareholder support we have received for the equity raising.”

The group said it would now extend the capital raising to existing retail shareholders at a similar price level. The retail purchase plan would have a target raising amount of $20 million but may be extended depending on shareholder demand, the group said.

In announcing the capital raising on Monday, Mr Walsh said it had primarily been launched to lower the group’s forecasted debt levels following the completion of the OneVue purchase.

“While the acquisition was contemplated based on debt funding and could be achieved with available debt, we have decided to adopt a more conservative funding strategy given the current economic environment,” he said.