The company is headed to LSE’s AIM Market
FCA regulated UK-based foreign exchange service provider Argentex (AIM: AGFX) announced its FY2019 revenue today as well as its intention to apply for admission of its entire issued and to be issued ordinary share capital to trading on the AIM market of the London Stock Exchange (“Admission”).
Argentex has conditionally raised £14.0 million (before expenses) at 106 pence per Ordinary Share (the “Issue Price”) by way of an institutional placing (the “Placing”) of 12,655,660 new Ordinary Shares (the “Placing Shares”) and a subscription (the “Subscription”) of 551,887 new Ordinary Shares (the “Subscription Shares”). In addition, 30,625,065 existing Ordinary Shares are being sold by the Selling Shareholders (the “Sale Shares”) pursuant to the Placing. Admission is expected to occur at 8.00 a.m. on 25 June 2019 with the Company having a market capitalisation at the Issue Price of £120 million.
LeapRate reminds that the company has signed several partnerships this year – with International Sports Management (ISM) in February and with the Professional Cricketers’ Association (PCA) last month.
Carl Jani, Co-CEO and Founder of Argentex said:
Today is an important milestone for Argentex, marking the start of the next phase of our ambitious growth strategy. The positive reception we have received from investors has been hugely encouraging and serves as an endorsement of the financial and operational strength of the business and our differentiated client proposition. We have a proven strategy in place to continue to address underserved parts of the FX market and with a stronger balance sheet going forwards, I look forward to the significant long-term growth opportunities that lie ahead of us.
Harry Adams Co-CEO and Founder of Argentex added:
The IPO will help us build on our unbroken track record of delivering profitable growth by supporting increased trading capacity, enabling us to meet the growing demand for our services. Our differentiated offering centres around an exceptional and growing team, bespoke product suite and technology platform. We are excited about our future as a listed company delivering our leading FX services and advice to our clients, while generating returns to investors.
Financial highlights
- Revenue: Argentex increased revenue from £10.6 million in FY17 to £21.9 million in FY19, representing a compound annual growth rate of 43%.
- Gross profit margin: the business recorded an average gross profit margin (revenue less associated commission and banking charges) of 82.3 per cent. between FY17 and FY19.
- Operating profit: operating profit has increased from £4.1million in FY17 to £9.4 million in FY19, representing a compound annual growth rate of 51.4 per cent.
- Currency traded: in FY19 gross currency traded by Argentex totalled £10.8 billion, up from £7.9 billion in FY18.
- Growth in client numbers: 1,141 corporate clients traded in FY19, up from 898 in FY18.
The Board intends to pay interim and final dividends representing a pay-out ratio of c.30 per cent. of the Group’s profit after tax, adjusted for any exceptional items. It is expected that the first dividend will be declared by the Company at the time of the release of the interim results for the period from incorporation to 30 September 2019.