Nearmap shares fall as it resumes trade after completing $70 million capital raise

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ASX down

The Nearmap (ASX:NEA) share price has fallen 7 cents or 3.9 per cent to $1.73 as it resumed trading after successfully completing a strongly oversubscribed $70 million capital raising at an issue price of $1.60.

The funds raised will be used to expand the group sales and marketing capability, to expand Nearmap product and technology capabilities and to further fund international expansion.

Nearmap expects the current business to be cashflow break-even for FY19.

Last month Nearmap said the market for aerial imagery data is significant, expanding and global in nature. On that basis, the company expanded its operations into the US, with Nearmap now generating record growth in its subscription portfolio, in excess of that from Australia, which itself experienced near record profit growth.

The company reported revenues jumped 32 per cent to $53.6 million, and the net loss after tax was $11 million as Nearmap continues to invest in its business.

Nearmap shares have almost trebled over the past 12 months, putting it firmly in the ranks of the top performing companies in the All Ordinaries Index over that time. So well have Nearmap shares performed that their 12 month return has exceeded that of glamour ASX tech stocks Appen, Altium and Wisetech.

Nearmap shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

Nearmap was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than Nearmap. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au