It’s a message that might surprise some: the niiio finance group is going through a capital increase. The fintech company from Görlitz, a provider of cloud banking software with a focus on asset management, wants to place up to 2.2 million shares with institutional investors as part of a private placement without subscription rights. The company has not yet officially reported the capital measure. At an investor conference held by the company, CEO Johann Horch reports that there is good demand. In addition to the company’s new shares, there should also be interest among investors in a convertible bond, for which niiio finance is one Reservation resolution for an issue volume of up to 5 million euros which is not used in the course of the ongoing share placement. It remains to be seen whether, given the demand, a convertible bond could also be issued.
The people of Görlitz want to use the proceeds from the issue to finance their growth. 0.7 million euros alone are to flow into sales over two years, and the plan is to expand the board and go on an acquisition tour. niiio finance wants to make five to six acquisitions by 2026, which together should come to around 40 million euros in sales. With an acquisition you want to pay the simple turnover – at most, as the company says about the acquisition plans. Above all, the company wants to use its own shares, which are to become the currency of acquisition through a capital increase in kind, along with possible small cash components. Without major price increases, this could result in significant dilution of the current shares: The company is currently only valued at around 22 million euros on the stock exchange.
In the long term, it is also conceivable that niiio finance will seek licenses for banking transactions, such as the safekeeping of securities, it says.
According to the information provided by the Ostdeutsche, the subscription period for the current capital increase should end on October 15 of this year at the latest. The issue price has not been determined, but in view of the minimum price of a capital increase of EUR 1.00 it will be above the current share price and will be based on an average XETRA price. On Wednesday, the tight-market paper in Tradegate trading was quoted at 0.955 euros with more than 3 percent in the red, but so far a total of 1,000 shares have been traded on the Tradegate platform. A further 200 securities changed hands today at EUR 0.98 in XETRA trading.
When asked about the numerous own share purchases recently, niiio boss Horch confirms that he will continue to buy shares in the company in the future if the opportunity arises. However, there is currently a blocking period for directors’ dealings: The next Wednesday wants niiio finance group according to the financial calendar half-year figures submit.