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Seymour Pierce repeats 'buy' recommendation on Monitise after Visa Europa raises stake

Published: 12:22 24 Aug 2012 EDT

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Seymour Pierce advised investors to buy Monitise (LON:MONI) after the mobile banking technology firm provided further information about the share placing it announced two days ago.

Monitise has issued 81 million shares at a price of 28.25 pence to raise a total £24 million. Today, the company revealed that the fundraising was supported by Visa Europe and Visa International, which agreed to subscribe for 45.2 million shares and 7.6 million shares respectively.

This takes Visa Europe’s stake to 10.2 percent from 6.67 percent, making it the company’s largest shareholder, while Visa International has maintained its interest at 9.4 percent.

At the time the placing was announced, Seymour analyst Brendan DSouza noted that following the all-share acquisition of Clairmail, Monitise’s four largest shareholders – which also include Norges Bank Investment Management and 3i Group – saw their combined interest fall from a third to 28.13 percent.

He said that all four have been long term holders and “would possible want to top up”.

The analyst today maintained his ‘buy’ recommendation on the stock and left its target price unchanged at 60 pence per share, compared with Thursday’s closing price of 29.75 pence.

Today, shares in Monitise rallied seven percent to close at 30.5 pence.

 

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