Stock price jumps nearly 9 per cent on news
British mobile payments firm Bango has unveiled plans to raise £6.5 million through the placing of new shares on London’s AIM market.
The news sent Bango’s shares soaring by nearly 9 per cent in early trading today [8th February 2013], rising to 225 pence.
Meanwhile, some three million new shares will be offered to institutional investors at 200 pence apiece, with Bango claiming the placing is already oversubscribed by both new and existing institutional investors.
Formed in 1999 and listed on London’s AIM market since 2005, Bango’s one payment system is used by well known brands such as Facebook, BlackBerry App World, Windows Phone Store and Amazon.
Customers are able to use their mobile phones to purchase goods with a single click, dispensing with the need for credit cards of SMS messaging.
The company says that money raised from the placing will be used to exploit opportunities in emerging markets and expand links with mobile carriers.
Said Ray Anderson, CEO of Bango, “We have made made significant progress through 2012 and into 2013, with a total reach now exceeding a billion mobile phone users.”
“We have executed on our plan to support a significant scaling-up in future transaction volumes; making key hires to boost our executive and operational team and investing in our technology platform.”
“We have also seen good development across our key metrics, with analytics transaction volume doubling again during 2012 and end user spend growth resuming towards the end of 2012 and into 2013.”
“We believe emerging markets represent an exciting growth opportunity for us, and are seeing increasing interest from key customers in these areas, in particular in Brazil, Latin America, India and other parts of Asia.”
“This fundraise provides us with the resources to move forward in developing those opportunities and we are confident that the massively smooth user experiences enabled by our unique technology platform, extensive mobile network operator relationships and industry leading customers provide us with a clear competitive edge in the fast growing mobile payments industry.”