Aussie Broadband (ASX: ABB) has set itself up for mergers & acquisitions, new product development and business growth following the completion of a $114 million placement.
Completed today, the Victoria-based company’s raise was strongly supported by new and existing institutional investors and will be given a further $10 million boost following a share purchase plan (SPP) which will close on 1 October.
The issue price for the placement shares was $4.00 per share, representing a 13.6 per cent discount to the last traded price on 6 September.
"We are very encouraged by the strong level of support from new and existing institutional, sophisticated and professional investors,” managing director Phillip Britt said.
“There are promising opportunities to execute transformational acquisitions in the business segment that will complement and improve Aussie Broadband’s position in the market.
“We believe this will help us to continue delivering outstanding results for our shareholders and help the company to continue to change the telco game in Australia.”
Shares in ABB are down 1.94 per cent to $4.54 per share at 1.50pm AEST.
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