Kape Technologies Share Discussion Threads

[shaker44] 30/10/2020 11:38

Hahahaha. You are unbelievable! Good thing you were just talking back in august/sept not spread betting. You would be getting so many margin calls. Please don't bet on this being 200 in days!!!

[volvo] 30/10/2020 11:19

lol, the market likes the deal...and it was a clever deal.

The PIA guys paid off for 145p, no shares to be issued, Unikmind still holds 65pc.

New investors, funds etc, directors and staff are in at 150p, and additional 43m in the bank. Cyber security front runner imo, 200p v soon, days.

[shaker44] 30/10/2020 10:49

No just all of Volvo's rallying cries over the last few Months coming good at last!!

[rivaldo] 30/10/2020 10:31

Moving nicely now - overhang cleared/excess demand from institutions driving the price up?

[rivaldo] 30/10/2020 07:44

Progressive Equity Research have issued a new note today. They've increased their forecasts - these are the new estimates:

this year : 14.2c EPS
next year : 15.8c EPS
2022 : 17.5c EPS

Here's the summary:

"From strength to strength

Fundraise provides future M&A firepower

Kape has announced that it has raised gross proceeds of $115.5million through a significantly oversubscribed placing and retail offer of 59.2 million shares at 150p and will use $72 million of the proceeds to buy out the two major vendors of PIA, the transformational deal which the Group completed at the end of 2019. The remaining $43.5million will be used to strengthen the Group’s balance sheet as it looks to select further acquisitions. There is an additional tax-related cashbenefit of around $50 million over 15 years that is now available to Kape following this change to the PIA deal structure.

This seems an intelligent way of removing any potential share overhang while also adding further to the group’s M&A firepower. Kape will cancel the shares which it acquires from the vendors and will not issue the vast majority of the deferred shares. With trading still robust and guidance unchanged, we make no alteration to our underlying business assumptions. Our EPS estimates reflect the changes to the shares in issue, both existing and prospective.

▪The Company’s majority shareholder, Unikmind, has subscribed for shares worth $55.7millionand, following Admission, will hold approximately 65% of the enlarged share capital. The Company’s directors have participated in the Placing in the amount of $175,000 in aggregate.

▪In a brief update on trading, Kape states that trading during Q3 2020 wasat the upper end of management’s expectations with user growth in the Privacy division reaching a run rate of 14% during the quarter. The integration of PIA is still expected to be completed by the end of 2020.

▪Guidance for FY 20E is reiterated: revenues for the year are expected to be between US$120-123 million, with adjusted EBITDA expected to be US$35-38 million.

▪The announcement states that current market conditions potentially present a number of acquisition opportunities which the capital raise will allow Kape to fully exploit. The extra firepower now available suggests to us that we could see another reasonably sizeable deal at some stage.

With trading continuing to be well on track for the full year, we believethat this agreement enhances Kape’s ability to take further advantage of the current business environmentthrough executing on its acquisition strategy."

[volvo] 29/10/2020 16:09

Big difference today....someone sitting on the bid all day....come on ill take em.

This is going to move quick again.

News coming imo.

[rivaldo] 29/10/2020 12:15

N+1 Singer have a new note out - the summary is worth copying here:

"Successful raise adds to firepower

Kape has today announced the successful, heavily oversubscribed raise of $115.5m from a mix of new and existing shareholders. The raise has been undertaken at a share price of 150p/share representing an 2% discount to prior close, and exceeds the initially targeted raise of $100m. $72m of the proceeds will be utilised to buy-out issued and eliminate deferred shares due to legacy founders of Private Internet Access (‘PIA’) which was acquired in Nov’19.

The remaining $43.5m will be held for acquisition and R&D investment.

We note that PIA’s executive team (CEO, CTO and COO) who joined Kape alongside the acquisition last year are all remaining in the business, with PIA’s founders only nominally involved post acquisition.

The benefits to Kape are three-fold: 1) the raise increases liquidity within the shareholder register; 2) Kape is acquiring founder shares at 145p/share, an 3% discount to the price of the raise; and 3) the beneficial tax structure created at acquisition shifts to Kape shareholders (as opposed to PIA founders) creating a c.$50m cash benefit to Kape recognised linearly over 15 years. Updated forecasts for FY’21E generate FCF of $28.2m, representing a 7% yield."

[volvo] 29/10/2020 09:37

Yesterday, they straight batted the trading update while hinted at trading at higher end of expectations.

Now the placing is complete, the employees have bought loads of shares as have the directors, I'm expecting more of a super upbeat trading statement, probably early next year...although they did state PIA was up 14pc y on y.

Buy and hold for 200p first port of call imo.

[volvo] 29/10/2020 09:30

Sagi's Unikmind took 25pc of the placing

[shaker44] 29/10/2020 09:23

The smart money will get out, selling in to what little strength there is today. Can still get out at 158 and some sales volume out there already. But most will hope for better things so they at least break even.

[w1lbur01] 29/10/2020 08:53

I think it's the pre leaked news to the city that gripes me!

[adamb1978] 29/10/2020 08:50

They would have had to issue to the shares anyway to pay for the deferred consideration Dozey. Its just that they've now placed them with IIs rather than issue them to ex PIA shareholders, who would have sold them. They've then topped that up to give them more flexibility. I'm not sure why anyone would ahve a concern with this

[dozey3] 29/10/2020 08:48

How to shaft ordinary shareholders: have a huge placing; at a huge discount; give very little notice; run laughing to the bank. Well done, text-book stuff.

[suetballs] 29/10/2020 08:46

My glass which was half empty is now half full.
Yippee - in my defence it's hard to be optimistic in these markets.
Suet

[w1lbur01] 29/10/2020 08:41

Agree with the fast execution is a sign of an imminent add on

[buying] 29/10/2020 08:33

That's an old ic tip. ST will probably update today at mid day

[ali47fish] 29/10/2020 08:16

onjohn- is the ic tip published today post placing

[volvo] 29/10/2020 08:10

fast execution...something coming soon

from yesterday......the balance to strengthen Kape's balance sheet and enable fast execution of further selective acquisitions, building on Kape's excellent M&A track record and continuing pursuit of growth.

[onjohn] 29/10/2020 08:05

ic
Fifthly, the shares registered an important triple top chart break-out when they smashed through the 200p resistance level into blue sky territory. On a 2020 price/earnings (PE) ratio of 18.8, and with potential to deliver double-digit EPS growth in 2021 and beyond, I lift my target price to 275p. Buy.

[volvo] 29/10/2020 08:01

Cyber security company?

[molatovkid] 29/10/2020 07:42

Guess it is what is now eh?

[igoe104] 29/10/2020 07:35

This is as good as a outcome they could of got from this position, it just shows the company is in good shape going forward. Hopefully a positive response from the market now.

[martinthebrave] 29/10/2020 07:19

Excellent news. 150p Placing & $115:5m raised. Possible overhang eliminated, new institutions on board & cash for acquisitions. share price will rise today IMO.

[volvo] 29/10/2020 07:12

All away at 150p, over subbed and an extra 15m in the bank.

Away from the directors and Sagi...the Kape employees bought 295k shares at 150p.

If the workers are throwing in cash, normally a sign things are looking ok from the inside.

300p by Christmas ;)

[rivaldo] 29/10/2020 07:11

Good news this morning, with the fundraising "significantly oversubscribed" and at 150p, which is about the best price KAPE could have got given where the share price is now.

Evidently the City has known about this being likely for some time, and the buyout was obviously the reason for the share price falling back.

With this now behind the company, and likely decent demand for shares in the aftermarket following the oversubscription, perhaps we'll see a nice share price rise.

Particularly as it seems acquisitions are imminent given KAPE's now huge firepower.