Citi says ASX-listed FINEOS' equity raising removes market overhang

FINEOS Holdings

02/09/2021 23:55

** Citi Research says ASX-listed FINEOS Corp Holdings'
 FCL.AX  equity raising provides co with capacity to invest in
its product and strengthens balance sheet
    ** The Dublin-based insurance management software developer
said on Thursday it will raise A$60 mln ($44.41 mln) via a
placement  urn:newsml:reuters.com:*:nASXb3NG2H
    ** FCL will also undertake a A$5 mln share purchase plan
    ** The earlier-than-expected capital raising removes
"overhang" on the stock and is in line with view that the co
requires growth capital - brokerage
    ** The fundraise also allows FCL with flexibility to pursue
small bolt-on acquisitions, Citi says 
    ** Citi maintains "buy" rating and lowers PT by 1% to A$5.22
    ** Six of six analysts rate the stock "buy" or higher; their
median PT is A$5.32 – Refinitiv data
    ** FCL stock up 22.4% this year, as of last close

($1 = 1.3510 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com;))