The placing at 40p raised gross proceeds of £3.2 million.
In the days following the placing, heavy selling of the shares has trimmed the price to 31.25p and the market capitalisation to £13.7 million.
The money raised through the flotation will help Turftrax exploit a new product that facilitates ‘in-race’ betting by automatically altering odds as the race develops. The company’s board has hailed this as ‘the most significant product revolution within horse racing betting in the past 20 years.’
Until now, Turftrax’s main clients have been race courses and media outlets. Chairman Adam Mills comments: ‘We have now begun to enter into commercial arrangements with leading bookmakers and have had our core technology mandated by the British Horseracing Association.’
Turftrax’s other products include the GoingStick, which enables the ground of a race course to be analysed. Last year the Horseracing Regulatory Authority initiated a year’s trial for the product on all 58 UK turf racecourses.
Based in Salisbury, the company started developing its products as early as 2000, beginning commercial operations several years later. Its turnover for the year ending March 2007 was £1.2 million, with pre-tax losses of £3.1 million.