WANdisco to raise £32m as it considers listing in the US

Live data company, WANdisco, is to raise £32m through a fundraising as it considers a potential dual-listing on a US market, in addition to its UK listing.

David Richards, chief executive and chairman of WANdisco

The Sheffield-based group said a US listing would improve its position with commercial partners and, given the high proportion of US shareholders, help maximise shareholder value.

WANdisco said it remains committed to AIM and maintaining its AIM listing.

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The firm said the cash will strengthen its commercial position and help it to capitalise on future growth opportunities.

These include expanding opportunities with other cloud vendors such as AWS and Google.

The cash will also be used to accelerate growth and pursue closer ties with ML/AI (Machine Learning and Artificial Intelligence) ISVs (Independent Software Vendors) and widening its SI (System Integrator) relationships.

In addition, the fundraising will provide capital for the early stages of growth as the firm’s relationships deepen with current Systems Integrators.

WANdisco has announced a proposed fundraising by way of a subscription and a placing to raise approximately $45m (£32m) in aggregate at a price of 446p per share.

The company also intends to enter into subscription agreements with certain US investors who have indicated that they intend to subscribe for a total amount of 5,594,152 new ordinary shares, equivalent to £25m at the issue price.

The issue price of 446p per share represents a 7 per cent premium to the closing price on Monday, March 8. The placing will need shareholder approval at a general meeting to be held on March 29.

Turning to current trading, WANdisco said it expects to report unaudited revenues of at least $10.5m (£7.5m).

David Richards, chief executive and chairman of WANdisco, said: “WANdisco is strategically positioned to deliver on the vast cloud migration opportunity ahead of us, expanding relationships beyond Microsoft Azure to partners such as AWS and Google as well as independent software vendors and system integrators.

"The promotion of our LiveData Platform by Microsoft Azure to their preferred product for cloud migration technology, establishes our technology as a global standard for cloud enablement."

Mr Richards said the firm will be hiring new staff in both its commercial and engineering divisions following the fundraising.

"In addition, we are pursuing the potential value creation provided by a US market listing, with access to a greater pool of capital in the region where many of our investors reside, alongside an increased profile in the US with our commercial partners," he added.

"While WANdisco continues to be committed to the AIM market which has supported WANdisco’s growth to date through access to capital, the scale of the opportunity ahead and increasing US concentration of both customers and investors provides a compelling rationale to pursue a potential US listing.”