March 17 (SeeNews) - Bulgarian software and IT services group Bianor Holding [BUL:BNR] said that its board approved a new share issuance, seeking to increase the company's equity capital to up to 1.22 million levs ($660,892/623,774 euro), from 675,222 levs.
The company plans to offer up to 545,000 new voting shares of 1 lev in par value each, priced at 17 levs apiece, Bianor said in a bourse filing on Thursday.
Current shareholders will receive rights to subscribe for new shares, proportionate to the stake they hold in the company, with some 1.24 rights corresponding to one new share.
The capital hike will be considered successful if no fewer than 106,000 new shares are subscribed and paid for. The company stands to make between 1.80 million levs and 9.27 million levs in gross proceeds from the increase.
With the earnings, Bianor aims to expand its information and communication technologies services portfolio, planning to use targeted bank financing to acquire two IT services companies - one focused on data analysis and artificial intelligence, and the other one active in software development for large companies and startups. The remaining funds will be invested in its existing subsidiaries and potential new acquisitions, the filing added.
The planned capital increase is subject to approval by the Financial Supervision Commission.
Earlier this week, Bianor Holding announced that it signed a definitive agreement to acquire 100% of local software developers Itido Technologies and Databreathe, as part of its strategy to complement organic growth through acquisitions of Bulgarian software companies.
Shares in Bianor last traded at 19.80 levs on the BaSE market of the Bulgarian Stock Exchange, bourse data show.
(1 euro = 1.95583 levs)