Victory Offices taps Ords for raising help

Serviced office owner Victory Offices is getting its capital raising ducks in a row.

Street Talk understands the $21 million company is working with broker Ord Minnett to help it stitch up a $15 million-plus raising for working capital to get through the COVID-19 downturn.

It is understood while a broker is on board, the situation was fluid and the structure and pricing of the raising was yet to be determined.

It’s not the most straight forward raising or the best news story for the company given Victory and its broker have been trying to stitch a deal together for almost a week. Shareholders wouldn’t have expected to be back in front of shareholders so soon after listing.

However, sources said a couple of the company’s major shareholders had indicated they would support the deal.

Victory offices has been in a trading halt since Friday last week and its shares last closed at 51¢.

It’s less than a year since the company listed on the ASX, in an IPO that was also overseen by Ord Minnett. That deal was done at $2 a share.

Victory is an operator of full serviced offices and co-working facilities in New South Wales, the ACT, Western Australia, Queensland and Victoria. 

The company generated $18 million in earnings in the first half of the 2020 financial year and posted a $3.3 million net profit after tax. At that time it had $131 million in lease liabilities.


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