BUZZ-Alkami Tech extends decline after $300 mln convertible offering priced

Reuters
11 Mar
BUZZ-Alkami Tech extends decline after $300 mln convertible offering priced

** Shares of digital banking firm Alkami Technologies Inc ALKT.O down 1% at $23.62 early Tues after securing capital raise to finance acquisition

** ALKT shares. which are falling for 4th straight session, lost nearly 13% on Mon amid broader retreat in equities

** Plano, Texas-based firm late Mon announced pricing private offering of $300 mln 1.5% 5-yr convertible bonds

** Initial conversion price of $32.82 represents 37.5% premium to stock's last close

** Co plans to use ~$29.5 mln of net offering proceeds to pay for capped calls, remainder to fund previously announced pending acquisition of MANTL

** On Feb 27, co said it would buy Fin Technologies (MANTL), an account opening solution, for $400 mln enterprise value, and announced Q4 results and 2025 outlook

** Co has ~$2.4 bln current market cap, per LSEG data

** With move on the session, shares off ~36% YTD following ~51% gain in 2024

** 8 of 11 analysts covering ALKT rate stock "strong buy" or "buy", rest "hold"; median PT of $45 implies ~90% upside to current levels - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10