Catapult completes $14m Institutional Placement

Key highlights

  • Catapult raises A$14 million at $2 per share, representing a 3% discount to last traded price
  • Strong demand from new and existing institutional shareholders resulting in bookbuild being heavily oversubscribed
  • A$3 million Share Purchase Plan (SPP) available to retail shareholders opens Monday, 8 May 2017

Catapult Group International Limited (Catapult, ASX:CAT) is pleased to announce it has successfully completed an institutional placement of new ordinary shares raising $14 million at $2 per share, representing a 3% discount to the last traded price (Placement).

The Placement received strong demand from new and existing institutions, both domestic and offshore, resulting in a heavily oversubscribed bookbuild that was closed early. As a result, the trading halt covering Catapult is expected to be lifted today. Morgans Corporate Limited and Bell Potter Securities Limited acted as joint lead managers to the Placement.

Shaun Holthouse, Catapult’s Chief Executive Officer, said “It has been great to see the ongoing support from Catapult’s existing shareholders, and we’re also very encouraged to welcome a number of new overseas and domestic institutional investors to the share register through this placement.”

Net proceeds from the Placement will be used to fund two key acquisitions which are in line with the Group’s strategic focus of expanding its range of products as it extends its global footprint in the elite performance technology market.

“Catapult has a strong track record in successful strategy development and execution, and these acquisitions will further bolster the strength of our technology stack and reinforce our credentials as the preferred global technology partner for elite sports performance,” said Mr Holthouse.

Bevin Shields, Catapult’s Head of Corporate Development, said: “We are continuously monitoring the market for elite-level products that are complementary to our existing platform. We particularly like solutions that may be sub-scale as a stand-alone product, but become compelling to our 1,500 existing team clients when offered as part of the broader Catapult suite. Typically this means we can pay a fair price, and leverage our existing relationships to enhance the group’s competitive advantage. In the past, such transactions have delivered further opportunities from growth as they add to the long-term recurring revenue base. We expect these proposed acquisitions to fit well within that framework.”

New shares subscribed for under the Placement are expected to be settled on Friday, 5 May 2017, with allotment and normal trading of new shares expected to commence trading on the ASX Monday, 8 May 2017.

Share purchase plan

Catapult also invites all eligible Shareholders to participate in a Share Purchase Plan (SPP) to be priced at the same price as the Placement ($2.00 per share). The total size of the SPP is limited to A$3 million and applications may be scaled back if necessary.

The SPP is open to all Catapult shareholders with a registered address in Australia or New Zealand as at 7.00pm (Sydney time) on Friday, 28 April 2017 (Eligible Shareholders). Further information on the SPP is expected to be despatched to Eligible Shareholders on Monday, 8 May 2017.