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Serious demand for car parts retailer Bapcor's (ASX: BAP) share purchase plan (SPP) has encouraged the company's directors to nearly double the amount on offer.
Bapcor received applications for the SPP totalling $122 million from registered shareholders for the SPP.
As a result Bapcor has increased the size of the SPP from $30 million to $56 million today.
Approximately 12.8 million new shares will be issued under the SPP on 25 May 2020. These new shares will rank equally with existing Bapcor shares on issue.
The increased SPP follows a successful $180 million underwritten institutional placement completed on 17 April.
When the raise was announced in April the company said funds would be used to reduce its net debt position.
The capital raise was complementary to a range of cost saving initiatives implemented by the company to preserve and manage cash flow during the Covid-19 crisis, including closing stores in New Zealand, cutting executive salaries, eliminating discretionary expenditure, and asking landlords for rent relief.
In April Bapcor CEO and managing director Darryl Abotemy (pictured) thanked those for supporting Bapcor's plans for the future.
"We are very pleased with the demonstration of support shown by our shareholders and other institutional investors for the Placement," Abotemy said.
"We see the success of the Placement as a clear endorsement of Bapcor's strong and resilient business and our strengthened position to continue to execute our five year strategy and any other growth initiatives that may arise."
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