SSH Raised €8m ($9m) in Fastest Public Company Share Offering Ever in Finland
Helsinki, June 20 2016 - SSH Communications Security Corp has today completed a share offering, where it raised €8m ($9m) from institutional and professional investors to support its growth and enforcement of its patents.
The board decided to start preparations for the share offering Friday evening June 17th. Investment bankers from Evli Bank and lawyers from Castren&Snellman worked over the weekend to prepare everything. After quick due diligence on Monday morning, the offering commenced. Five hours later, the company announced suspending book building, because the offering was already 150% subscribed. Among the investors were two of the largest pension insurance companies in Finland.
Many growth companies struggle to raise funding these days, and many CEOs spend months or even years trying to raise their funding. This round took one day of CEO time and three days of real time. This enables us to focus on growing the business and on the important things, says Tatu Ylonen, CEO of SSH Communications Security.
From the stock exchange release:
The Offering is carried out to strengthen the Company’s cash position. The Company closed a 3.2Me deal with a European financial institution in April, and the Company believes that it has potential for several similar sized customer cases. The Company believes the SSH key management market is finally awakening and products are ready to scale the deployed base. Therefore, the Company plans to significantly expand its sales and delivery capability, and the additional funding gives the backbone to systematically develop these functions. This is important for winning market share and maintaining leadership in the market. Additionally, the stronger cash position will help the Company enforce its patent portfolio and secure more favorable licensing deals. The Company is also continuing to invest in its specialty firewall.