Financial software firm First Derivatives has announced it expects to raise £3.3m by issuing new shares in the company.
The Newry-based business said it had placed 1.15 million new ordinary shares in the market with certain institutional and other investors.
It said that the share placement had been undertaken to "satisfy strong investor demand" following the release of its annual results at the end of last month, when First Derivatives posted a 45% rise in revenues to £25.5m and a 27% increase in pre-tax profits to £5.6m.
The net proceeds of the share sale will be used to reduce the firm's borrowings and to supplement working capital requirements.
Brian Conlon, chief executive of First Derivatives, said: "We are delighted to have received this investment from a range of new institutional investors which we see is a vote of confidence in our business model.
"The proceeds will be used to continue the expansion of our geographical reach and in growing our range of Delta software products. The group continues to perform strongly and we expect to announce details of significant new clients in the coming weeks."
The shares were placed at a price of 295p per share, a slight discount from the firm's closing share price of 297.5p at the end of last week. The new shares are expected to start trading this Friday.
Following the allotment, the total issued share capital of the company will increase to 15,500,726 ordinary shares, giving it a market capitalisation of £46m.
First Derivatives employs 450 worldwide and counts many of the world's top investment banks, brokers and hedge funds as its customers.