K3 boosts deals warchest with £5m placing

BUSINESS software specialist K3 has raised £5.3m in a placing of 2.56 million shares at 205p per share.

The AIM-listed Salford Quays -based group said new and existing shareholders had taken part in the fund-raising, which had been over-subscribed and was at a discount of 5.5% to Wednesday’s closing price.

The proceeds will be used to support K3’s buy and build acquisitions strategy.

It said in a statement: “The board continues to identify targets which will add contracted, recurring income as well as those which will further develop the company’s product offering.” 

K3 also announced that its deals warchest had been further boosted by a deal with Barclays Corporate to match the proceeds of the placing on a pound-for-pound basis.

Andy Makeham, chief executive of K3, said:”We are delighted to have completed this placing with good support from both new and existing institutional shareholders.

“K3 has demonstrated its ability to deliver strong growth both organically and via acquisitions and we believe that the demand for shares in the placing reflects the exciting opportunities for further expansion.

“With these funds in place, as well as the support of our bank, Barclays, K3 is well positioned to achieve its growth ambitions.”

K3 provides supply chain software to high street retailers including Crewe-based Rymans and IKEA.

New institutions joining the shareholder register include Investec, JP Morgan, Majedie and ISIS.