ikeGPS Group (ASX:IKE, NZE:IKE) unveiled a AU$20 million equity raising, including a fully underwritten AU$18 million placement and a AU$2 million share purchase plan, according to a Thursday filing with the New Zealand and Australian bourses.

The company will issue roughly 22.2 million new shares at AU$0.81 each under its placement capacity to raise AU$18 million, with the offer price reflecting a 6.1% discount to the five-day volume-weighted average price as of Wednesday, the filing said.

Proceeds will fund new software development, boost sales and marketing, and support general working capital and strategic acquisitions.

The company will offer eligible Australian and New Zealand shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP) to raise up to AU$2 million, allowing applications of up to AU$30,000 or NZ$32,500 in new shares at the offer price, with the offer closing on Aug. 7, the filing added.