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SHAREHOLDERS of Corporate Travel Management (ASX: CTD) have backed the company’s expansion plans with their hard-earned dollars, with 97.71 per cent taking up the option to buy shares in the company’s capital raising offer.
CTD announced a four for 27 renounceable rights issue for ordinary shares in CTD on November 20, at a price of $4.60 to raise approximately A$53.3 million to fund its acquisition of Westminster Travel.
The company received valid applications under the Entitlement Offer for approximately 11,328,836 shares (approximately $52.1m).
This represents about 97.71% of the 11,594,518 new shares offered to eligible shareholders.
The offer was fully underwritten by Morgans, which takes up the shortfall of 265,682 new shares worth $1.2 million.
Managing director Jamie Pherous (pictured) is pleased with the result.
“The acquisiton will fast-track CTM’s entry into the Asian travel market, delivering an immediate and mature footprint in key Asian markets, and provides cross-selling and growth opportunities which will benefit both businesses,” he says.
“We would like to thank shareholders for their continued support.”
The offer closed at 5pm on January 16. The allotment of new shares under the entitlement offer is scheduled to take place on January 24, with trading to commence on January 28.
CTD shares are trading up 0.7 per cent at $5.50 this morning.
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