Australia's FINEOS slumps on lacklustre earnings, discounted placement

FINEOS Holdings

16/08/2023 04:32

(Updates with share moves and Comments from Citi)
    ** Shares of Australia's FINEOS Corporation  FCL.AX  fall
16.1% to A$2.1, hitting their lowest since July 10 
    ** Co reports FY23 EBITDA of 2 mln euros ($2.18 mln) on
Tuesday after market close, down 70.2% from FY22 levels
    ** Also reports FY23 total revenue of 125 mln euros, down
1.7% from FY22 levels
    ** FINEOS sees FY24 revenue to be in the range of 131
million to 135 million euros; weaker than Citi's expectations 
    ** The Ireland-based software vendor also to raise A$40 mln
($25.79 mln) at an offer price of A$2.25 per share, which did
not come as 'surprise' to analyst at Citi
        ** The offer price represents a discount of nearly 12%
to stock's last close on Monday 
        ** Citi sees upside risk to costs on potential for co to
step-up R&D investment
        ** Stock posts biggest intraday fall since Feb. 24 
    ** Stock up 67.2% this year, as of last close 

    ($1 = 0.9174 euros)
    ($1 = 1.5511 Australian dollars)

 (Reporting by Navya Mittal and Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))