Quindell Portfolio (LSE: QPP) — a provider of software, consultancy and technology outsourcing expertise in the insurance, telecommunications and related sectors — is currently up over 3% on publication of the news that the company has raised £200m in a placing of new shares.
Just over 1.3bn new shares were placed at a price of 16p per share, and Quindell reports that it saw “strong demand” from both existing and new institutional investors. The company says that the new money will be used to fund the working capital requirements of new contracts, and to enable it to capitalise on new business opportunities, increase its market share, and to “support its goal of becoming the leading supplier of technology based insurance and telematics solutions globally“.
The company also says that it is seeking shareholder approval at a general meeting to be held on 2 December to change its name from Quindell Portfolio Plc to Quindell Plc, which the directors believe better reflects the company’s business.
Commenting on the share placing, Founder and Executive Chairman Rob Terry said:
“The Placing was materially oversubscribed and priced at 16p per share, representing a premium to the current market price. I would like to thank both our new and existing investors who have supported this Placing. The level of support demonstrates a significant vote of confidence in our business model and prospects.
“The Board has a track record of being able to effectively deploy funds to primarily support organic growth, providing a strong return on capital and enhancing earnings for shareholders. We look forward to continuing to build on this track record by deploying these additional funds to support significant future growth“.
At the time of writing Quindell’s share price stands at 16.6p. That’s 3% down so far in 2013 — primarily due to a puzzling slump in early May — and only up just over 13% on this time last year, a period during which the FTSE 100 has gained 17.7%.
