Craneware shares fall 10% amid $193m placing

Shares of Edinburgh-based Craneware, a provider of software for the US healthcare market, fell about 10% on Tuesday after it said it sold shares in a placing with “certain existing and new institutional investors” to raise gross proceeds of $193.5 million (£136.2 million) for the company.

The proceeds will help fund the acquisition announced on Monday of Florida-based Sentry Data Systems “for an aggregate consideration of $400 million.” 

The placing shares represent 23.1% of the company’s current issued share capital.

“A total of 6,192,652 Placing Shares have been conditionally placed by Goldman Sachs International, Peel Hunt LLP, Investec Bank plc and Joh. Berenberg, Gossler & Co. KG with certain existing and new institutional investors at an issue price of 2,200 pence per share, raising gross proceeds of approximately £136.2 million ($193.5 million) for the company,” said Craneware.

“The placing price of 2,200 pence represents a discount of approximately 10.2 per cent to the closing mid-market price of 2,450 pence per ordinary share on 7 June 2021, being the last practicable day prior to the announcement of the placing.

The placing shares, when issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue, including any final dividend declared in respect of the year ended 30 June 2021, which the board currently expects to announce in September 2021 …

Craneware consulted with a number of its major shareholders prior to the placing and has respected the principles of pre-emption through the allocation process.

“The company is pleased by the support it has received from both existing and new shareholders.”