Shares in Earthport (EPO) fell more than a tenth on 4 October after the cross-border payments specialist announced an oversubscribed £25m share placing of 125m shares at 20p each. Management said the proceeds will “drive additional growth”, expanding the company’s presence and geographical reach, while enabling product development and investment in its operational platform.
IC TIP:
Hold
at
22p
The new shares will comprise 20 per cent of the enlarged share capital. The market’s reaction probably reflects the inevitable dilutive effects for current shareholders. But for house broker N+1 Singer the funds “will place the group on an enhanced growth trajectory”. In the context of the burgeoning global payments sector, Earthport is a “disruptive market player”.
