ASX-listed tech hardware, software and cloud distributor, Dicker Data, has revealed it’s raising $50 million via investment bank JPMorgan to fuel “long-term growth objectives.”

The funds will be used to partly fuel the expansion of its new distribution centre and warehouse, in addition to improving trading liquidity.

The raise will occur via an institutional placement and accompanies a share purchase plan worth $5 million.

“The equity raising will be used to support Dicker Data’s long-term growth objectives, and ensure we remain well positioned as Australia’s leading value added technology distributor,” claims Dicker Data Chairman and CEO, David Dicker.

Shares are being offered at $6.70 each, versus their last close of $7.18.

The NSW-based company is worth around $1.2 billion and has been operational for over forty years.\

The distributor sells to a partner base of over 5,500 resellers, with tech vendors including HP, Lenovo, Microsoft and Dell.

In a market update, the company claims it has not experienced any material adverse change to its overall sales pipeline or earnings as a result of the COVID19 pandemic.

Dicker Data post “strong” performance for the month of April (total monthly revenue of $163.7 million) up 37.7% versus the comparative period last year.

The company attributes the jump in demand from the surge in mobilisation towards remote working solutions amid the coronavirus pandemic. 

Dicker Data entered a trading halt on Thursday.