April 2 (SeeNews) - Montenegrin financial technology firm Profit App International [MNG:PFAP] hopes to raise 1.225 million euro ($1.324 million) from the sale of a new share issue through a public offering, it said.
The company is offering 67,388 new shares at an issue price of 18.18 euro each, equal to the stocks' nominal value, it said in a public invitation to interested investors sent to the Montenegrin bourse on Monday.
The subscription will remain open for 30 days. The success threshold of the new issue is set at 15% of the offer, the fintech company said.
Profit App International intends to use the proceeds from the new share issue to purchase electronic money licences from Montenegrin and European Union authorities. It has already applied for the licences, expecting to pay 400,000 euro for the Montenegrin permit and 600,000 euro for the EU one.
At the same time, the company's management is exploring investor interest in a potential second issue of new shares, though it is not clear yet what its size will be and whether it will be placed though a public or private offering. However, the management has pledged to take a decision on such a share issue by the end of May.
In December, Profit App International sold in a private placement 15,127 new shares of 18.18 euro in par value each, raising 275,009 euro.
The company's pre-tax profit rose to a preliminary 161,000 euro in 2023, from 107,000 in 2022.
Profit App International was established in May 2019. It is 99.1%-controlled by Podgorica-based Profit App, which is 60%-owned by its executive director Vojin Raskovic.
Profit App International offers mobile application payments, instant money transfer and instant cashback, among others, in Montenegro, Slovenia, Serbia, and Bosnia and Herzegovina, planning to expand its presence in the European Union in the coming period.
($ = 0.925 euro)