Activeport Secures $6.1M to Accelerate Global Telco Software Expansion
Activeport has successfully closed a $6.1 million capital raise, including a significant placement to new institutional investor MWP Partners, positioning the company for accelerated growth in the global telecommunications and data centre software markets.
- Raised over $6.1 million through rights issue and placement
- MWP Partners becomes largest shareholder with 18% stake
- Funds to support hiring in sales and software development
- Strengthened balance sheet to fuel global telco and data centre expansion
- Placement shares issued at 4% discount to 30-day VWAP
Capital Raise Closes Strong
Activeport Group Ltd (ASX: ATV) has successfully completed a renounceable rights issue alongside a strategic placement, raising a total of more than $6.1 million. The capital raise included $4.1 million from the rights issue and a $2 million placement to Hong Kong-based institutional investor MWP Partners, who now holds an 18% stake and is the company’s largest shareholder.
The placement shares were issued at 1.624 cents each, representing a modest 4% discount to the 30-day volume weighted average price (VWAP), reflecting investor confidence in Activeport’s growth prospects. Unlike the rights issue, no options were attached to the placement shares.
Strategic Partnership with MWP Partners
MWP Partners’ entry marks a significant milestone for Activeport, bringing not only capital but also institutional credibility. The fund’s Chief Investment Officer, Angus Walker, expressed optimism about Activeport’s early-stage growth trajectory and its potential to inflect profitability as it expands within the telecommunications and data centre sectors globally.
Activeport’s Chairman and CEO, Peter Christie, welcomed MWP Partners, highlighting the transformative nature of the placement. He emphasized that the strengthened balance sheet provides the working capital necessary to accelerate growth, particularly through expanding the company’s sales force and software development teams.
Growth Plans and Market Positioning
Activeport’s software automates complex orchestration tasks for telecommunications providers and data centre operators, streamlining ordering, provisioning, billing, and support processes. The fresh capital will enable the company to scale its Australian SaaS business and aggressively pursue global opportunities in the telco and data centre markets, sectors that are increasingly reliant on automation and efficiency improvements.
The company plans to leverage this funding to hire additional sales and software development personnel, aiming to accelerate software sales and enhance product capabilities. This strategic investment in human capital is critical as Activeport seeks to solidify its position as a major player in the enterprise software space.
Looking Ahead
With the rights issue and placement now closed, Activeport is well-positioned to execute on its growth strategy. The company’s ability to convert this capital into tangible revenue growth and market share gains will be closely watched by investors, especially given the competitive landscape of global telecommunications software providers.
Activeport’s next steps include completing the placement by early February 2025 and initiating its planned hiring and expansion activities. The involvement of MWP Partners also suggests potential for increased market visibility and strategic support as the company scales.
Bottom Line?
Activeport’s successful capital raise and new institutional backing set the stage for a pivotal growth phase in the competitive telco software arena.
Questions in the middle?
- How effectively will Activeport deploy the new capital to accelerate revenue growth?
- What strategic influence will MWP Partners exert as the largest shareholder?
- Can Activeport sustain momentum and achieve profitability amid global competition?