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24 May 2013 by Ambrose McNevin - DatacenterDynamics
UK cloud company Outsourcery plc floated on London’s small cap Alternative Investment Market today with early trading seeing a 5p rise above its opening price.
The initial offer size was £12.7m with the firm aiming for a market capitalisation of £34.6 million at the placing price of 110p per share of 11,542,642 Ordinary Shares. It will raise £11.0 million, before expenses, to fund the Group to cash flow break-even of £1.7 million, before expenses, representing the realisation of capitalised loans
As a reseller the firm has close ties to Microsoft and commercial relationships with Vodafone, Virgin Media Business, BT, HP and Atos.
Customers include Pearson plc and London Business School. Investec is acting as Nominated Adviser and Broker and acted as sole book-runner on the Placing
Its cloud services are deployed on its proprietary O-Cloud platform, a £30m development. The business model is focused on subscription-based customer contracts, ‘providing a growing base of recurring revenues, leveraging its a stable overhead cost base and low ongoing requirement for capital expenditure.’
Piers Linney, Outsourcery’s Co-CEO, said: “We aim to exploit the opportunities we are seeing at this exciting time in our development and see this fundraising as a great endorsement of our business model, technology platform and growth prospects. The funds will enable us to continue to grow rapidly, support the development of our portfolio of unique products and provide the financial resources to help us scale our business and our leading market position.”