Key points:
- Bidstack share surged 9.82% on £10 million share placement and subscription.
- The in-game advertising raised the monies to its current share price at a premium.
- Bidstakc shares look attractive at current prices, given their cheap valuation.
The Bidstack Group PLC (LON: BIDS) share price surged 9.82% after revealing that it has raised £10 million via an equity fundraising. The company raised the amount via a conditional placing and a subscription announced yesterday.
The in-game advertising company placed 175,438,596 shares, which were sold at 2.85p each, while a similar number of shares were sold via a subscription to Irdeto in cash at the same price to raise a total of £10 million.
Also read: Best US Stocks To Buy Right Now From The UK.
The new shares issued represented 38% of Bidstack’s total issued share capital and a 4% premium to the closing price of Bidstck shares on 05 October 2022. As a result, the company will be left in a robust financial condition following the placement.
Investors cheered the announcement, given that Bidstack raised a significant amount of new cash at prices higher than its previous trading price showing that other investors thought that Bidstack shares were more valuable than their current price.
The in-game advertising company intends to use the funds raised to advance its growth strategy in the United States, where it has identified a substantial untapped opportunity for in-game advertising, given the millions of ardent gamers residing there.
Bidstack is onboarding salespeople to market its services in critical markets such as the UK, France, Germany, Netherlands, Spain, Italy, Portugal, the Nordics, and Belgium.
The company is simultaneously building its portfolio of games while at the same time growing its client base, including enterprise customers such as Azerion, which licensed its PubGuard technology for two years.
Bidstakc’s prospects look promising, and the company’s shares are trading at a chap valuation. As a result, I would buy BIDS shares at current prices and look to profit from any future price increases.
*This is not investment advice.
Bidstack share price.
The Bidstack share price surged 9.82% to trade at 3.13p, rising from Wednesday’s closing price of 2.85p.
