Listed software company ELMO (ASX: ELO) has successfully completed an institutional placement to raise $45 million through the issue of 8.3 million new shares.
Initially limited to $40 million, the company raised the limit to $45 million due to oversubscription.
The company listed on the ASX in June 2017 and was the biggest tech IPO at the time with a market cap of $128 million and an IPO raise of $25 million.
Since listing, the company has completed a string of acquisitions, and intends to continue down the acquisition road following the placement.
Additionally, the company intends to use the proceeds to strengthen the balance sheet to support ongoing research and development, sales and marketing, and general corporate purposes.
The additional $5 million, in particular, will be used to fund future acquisitions.
ELMO CEO Danny Lessem (pictured) says he was impressed by the support from existing and new shareholders.
"We are very pleased with the level of institutional support for the raising both from existing and new shareholders, and we welcome our new shareholders to our register," says Lessem.
"We look forward to the next phase of the company's growth with their support."
Since listing, the listed company has completed three strategic acquisitions (LiveSalary, Sky Payroll, and Pivot).
Business News Australia spoke to Danny Lessem about listing ELMO on the ASX in October last year. Read that interview here.
Shares in ELMO are down 2.83 per cent to $5.84 per share at 12.05pm AEDT.
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