Final offer price for Raketech’s listing set at SEK 30 per share – trading commences today
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Raketech Group Holding plc (”Raketech”, the ”Company” or the “Group”), a Nordic leading online-based marketing company, today announces the outcome of the initial public offering of its shares and listing on Nasdaq First North Premier (the “Offering”). The Offering attracted strong interest both among Swedish and international institutional investors. The Offering was substantially over-subscribed.
The Offering in brief
- The final price of the Offering has been set to SEK 30 per share, corresponding to a market capitalisation of SEK 1,137 million for Raketech, after the new issue in the Offering.
- The Offering comprised 15,669,003 shares, of which 13,333,333 new shares were issued by the Company. The remaining 2,335,670 existing shares were offered by shareholders in Raketech. The Offering of new shares will provide Raketech with gross proceeds of approximately SEK 400 million and net proceeds of approximately SEK 365 million.
- To cover potential over-allotments in connection with the Offering certain shareholders have committed to sell up to additionally 2,350,350 shares corresponding to 15 percent of the total number of shares in the Offering (the “Over-allotment option”).
- The Offering encompasses approximately 41 percent of the total number of shares in the Company, following completion of the Offering. Assuming that the Over-allotment option is exercised in full, the Offering will encompass 48 percent of the total number of shares in the Company, following completion of the Offering.
- If the Over-allotment option is exercised in full, the value of the Offering will amount to approximately SEK 541 million.
- Immediately following the completion of the Offering, and assuming that the Over-Allotment Option is exercised in full, Raketech’s largest shareholders will be Tobias Persson Rosenqvist (12.4%), Erik Skarp (8.2%) and Johan Svensson (7.7%).
- Trading in the shares of Raketech on Nasdaq First North Premier commences today 29 June 2018, under the symbol "RAKE" and settlement will take place on 3 July 2018.
Michael Holmberg, CEO of Raketech:
”We are very pleased about the strong interest in Raketech demonstrated by the public and institutional investors during the listing process. The strong demand from both Swedish and international investors confirms our belief in our strategy, our offering as well as our potential. This is an important milestone for us, and we welcome all new owners to the continuation of Raketech’s journey.”
About Raketech
Raketech is an online-based marketing company. Its primary business involves offering products that enable the Company to guide users in the iGaming market who are interested in sports and gambling to the best gambling services. By providing products with high-quality, relevant content the Company increases users’ awareness of the offerings available from various gambling operators and other advertisers, enabling users to choose an end-service more easily. Raketech works through three operational areas: Core, Lab and M&A. In Core the Company develops and optimises its existing products, in Lab the Company develops innovative new products in-house or through joint ventures, and in M&A the Company acquires new assets in line with its overall acquisition strategy.
The Company mainly uses two different marketing methods to attract traffic to its products: Performance-based marketing and Media-based marketing. Raketech’s product offering is divided into four product areas: products based on search engine optimisation (“SEO”), online communities, online guides and social media. Raketech charges its partners using three main revenue models (revenue share, upfront payment and flat fee) and also applies a fourth model that is often a mix of the main models (known as a hybrid). During 2017 revenue from revenue share, upfront payment and flat fee models made up 55 percent, 26 percent and 20 percent respectively of Raketech’s revenue. The number of new depositing customers (“NDC”) has increased since 2015 from 5,270 to 67,193 in 2017.
The number of employees as of 31 March 2018 was 95. The Group focuses on around 20 websites which generate traffic and online players to more than 300 brands belonging to 80–100 different iGaming operators (also known as customers or partners). For the full year 2017 Raketech’s revenue amounted to EUR 17.1 million, corresponding to a year-on-year growth of 64 percent. The Group reported adjusted operating profit of EUR 9.0 million, representing a growth of 12 percent and margin of 52 percent.
The Offering is described in its entirety in the prospectus which was published on 18 June 2018, which is available i.a. on the Company’s website.
Advisors
Danske Bank A/S, Danmark, Sverige Filial and SEB Corporate Finance, Skandinaviska Enskilda Banken AB act as Joint Global Coordinators and Joint Bookrunners (the Managers) in connection to the offering. Gernandt & Danielsson Advokatbyrå KB act as legal advisor in Sweden, GANADO Advocates act as legal advisor in Malta and Advokatfirman Vinge KB is the legal advisor to the Managers.
For further information, please contact:
Michael Holmberg, VD / michael@raketech.com
Andreas Kovacs, CFO / andreas.kovacs@raketech.com
Raketech Group Holding plc
6 Paceville Avenue, St Julian’s, STJ 3109, Malta
This information is information that Raketech is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 29 June 2018.
Important information
This press release does not contain or constitute an invitation or an offer to acquire, sell, subscribe for or otherwise trade in shares or other securities in Raketech. Invitation to the persons concerned to acquire shares in Raketech will only be made through the prospectus referred to in this press release. The prospectus will contain, among other things, risk factors, financial statements as well as information regarding the Company’s Board of Directors. This press release has not been approved by any regulatory authority and is not a prospectus and accordingly, investors should not acquire any securities referred to in this press release, except on the basis of information provided in the prospectus referred to in this press release.
In certain jurisdictions, the publication or distribution of this press release may be subject to restrictions according to law, and persons in those jurisdictions where this press release has been published or distributed should inform themselves about and abide by such restrictions.
The shares or securities of Raketech have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or jurisdiction within the United States, and no shares or other securities in Raketech may, directly or indirectly, be offered, sold, resold, transferred, delivered or distributed to or within the United States. No shares or other securities in Raketech will be offered in the United States. There are no plans to register shares or other securities in Raketech, or to conduct an offering of such shares or securities, in the United States.
This press release may not be announced, published or distributed, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or the United States or any other country where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectuses, other offer documentation, registrations or other actions in addition to what follows from Swedish law. The information in this press release may not be forwarded, reproduced or disclosed in such a manner that would contravene such restrictions or would require such additional prospectuses, other offer documentation, registrations or other actions. Failure to comply with this instruction may result in a violation of the Securities Act or laws applicable in other jurisdictions.
This press release contains forward-looking statements which reflect Raketech’s current view on future events and financial and operational development. Words such as “intend”, “will”, “expect”, “anticipate”, “may”, “plan”, “estimate” and other expressions than historical facts which imply indications or predictions of future development or trends, constitute forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements. The information, opinions and forward-looking statements concluded in this announcement speak only as of its date and are subject to change without notice.
In connection with the Offering, Danske Bank may engage in transactions that stabilise, maintain or otherwise affect the price of the shares for up to 30 days from the first day of trading of the shares. Specifically, SEB, the Selling Shareholders and the Company have agreed that Danske Bank, in its capacity as stabilising manager (the “Stabilising Manager”), may over-allot shares or effect transactions with a view to support the market price of the shares at a level higher than that which might otherwise prevail. The Stabilising Manager and its agents are not required to engage in any of these activities and, as such, there is no assurance that these activities will be undertaken. If undertaken, the Stabilising Manager or its agents may end any of these activities at any time and they must be brought to an end at the end of the 30-day period mentioned above. Save as required by law or regulation, the Stabilising Manager does not intend to disclose the extent of any stabilisation transactions.