Information technology company Servcorp Ltd
(ASX:SRV) has raised $75 million from institutional investors following completion of its institutional offer.
The company raised $51 million via its institutional placement and approximately $24 million under its institutional entitlement offer.
Chairman Bruce Corlett says the company is extremely pleased with the positive response shown by existing and new institutional investors.
Mr Corlett says the strong level of demand demonstrates the markets view that the company’s global expansion plans represent significant opportunity.
The company is hoping to raise a further $5 million from retail investors when the retail component of its entitlement offer opens on Tuesday October 20.
Servcorp says it plans to use the proceeds from the raising, plus existing available cash reserves, to fund its expansion inclduing the roll-out of at least 100 new floors over the next three to four years, the vast majority of which will be ‘Virtual Office floors’.
Servcorp’s 2009 net profit was its best in five years.
