FreeAgent raise £10.7m from initial public offering
by Scott McCulloch, November 16, 2016 7:55
Accounting software developer FreeAgent has raised £10.7 million from investors as it joins the junior AIM market with a market capitalization of approximately £34.1 million. The Edinburgh-based company, which provides software-as-as-service (SaaS) accounting tools for micro-businesses, said it placed 9,523,810 new ordinary shares in its initial public offering, raising gross proceeds of £8.0 million and a further 192,850 existing ordinary shares which raised £2.7 million for the selling shareholders. Shares in both trades were priced at 84 pence.
Ed Molyneux, chief executive of FreeAgent Holdings, said: “We are very pleased to have today been admitted to trading on AIM – this is a transformational event for FreeAgent. “I am delighted by the interest shown in FreeAgent by investors, resulting in our successful placing, and equally delighted to welcome on board our new shareholders. “Our entry to the AIM market is a positive step that marks the next phase of FreeAgent’s development as we progress our growth strategy.”
The company unveiled its plans last month to float on the AIM market as it looks to accelerate product development, notably in the digital tax offering while also scaling-up customer acquisition, “with a particular emphasis on large accountancy practice customers”. The fund raised will also allow FreeAgent to pay down its existing debt.
Andy Roberts, who led The Innovation Group Plc before its £500 million sale to Carlyle Group this year, joined the company last month as non-executive chairman.