Afterpay shares rise as capital raising exceeds target

Afterpay shares rise as capital raising exceeds target

Buy-now pay-later (BNPL) heavyweight Afterpay (ASX: APT) have surged 9.5 per cent this morning to $26.47 after an institutional placement raised $317 million.

Those who took part in the capital raising will already be reaping the rewards as the new shares were issued at $23 each, while a $30 million share purchase plan (SPP) is on its way.

The funds will go towards overseas expansion for the fintech, which sees significant scale-up opportunities for its US division and opportunities in the UK, Australia and New Zealand.

Afterpay was aiming to raise at least $300 million through the placement. 

"We are pleased by the strong investor support shown in the capital raising for the Afterpay business and our global growth strategy as outlined in our previously announced mid-term plan," says director Elena Rubin on behalf of the company's independent directors.

"The Placement was oversubscribed, and we are also pleased to welcome several new high-quality institutions onto our register."

The company also confirmed today the sell-down of 2.1 million shares from founders Anthony Eisen and Nicholas Molnar, as well as 400,000 shares from group head David Hancock, was completed. 

These shares were sold to cornerstone US investors Tiger Management and Woodson Capital for around $103.5 million.

"Mr. Eisen, Mr. Molnar and Mr. Hancock have each confirmed their intention to remain as supportive and committed investors in the Company, and have committed to not sell any further shares until at least 120 days from the announcement of the Placement," the company states.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

SelfWealth shareholders quash board overhaul attempt

SelfWealth shareholders quash board overhaul attempt

Shareholders in fast-growing online brokerage startup SelfWealth (A...

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

EVENT to hit divestment target once $75m Rydges North Sydney sale completes

Entertainment and leisure services provider EVENT Hospitality &...

Takeover activity lifts a gear for Infomedia with a second $657m bid from Battery Ventures

Takeover activity lifts a gear for Infomedia with a second $657m bid from Battery Ventures

Auto industry software services group Infomedia (ASX: IFM) is mulli...