Corporate Travel Management (ASX:CTD) - Founder & Managing Director, Jamie Pherous
Founder & Managing Director, Jamie Pherous
Source: Jamie Pherous/LinkedIn
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  • Corporate Travel Management (CTD) has completed its $75 million fully underwritten placement to fund the acquisition of Helloworld Corporate
  • The company will issue around 3.6 million fully paid ordinary shares at an issue price of $21 per share, representing an approximate 2.6 per cent of CTM’s pre-offer issued share capital
  • Proceeds will fund the acquirement of Helloworld Corporate from ASX listed Helloworld Travel Limited (HLO), supporting the company’s next stage of growth
  • Following placement completion, CTM says they intend to launch a fully underwritten Share Purchase Plan (SPP) to raise up to $25 million to eligible shareholders
  • Corporate Travel Management shares are down 5.8 per cent to trade at $30 at 1:40 pm AEDT

Corporate Travel Management (CTD) has completed its $75 million fully underwritten placement to fund the acquisition of Helloworld Corporate.

The company will issue around 3.6 million fully paid ordinary shares at an issue price of $21 per share, representing approximate 2.6 per cent of CTM’s pre-offer issued share capital.

The placement also represents a 5.8 per cent discount to the last traded price on December 14 of $22.29.

Proceeds will fund the acquirement of Helloworld Corporate from ASX listed Helloworld Travel Limited (HLO), a leading travel business comprising the brands QBT, AOT Hotels, TravelEdge, Show Group, Inspire Travel Management, APX and Atlas Travel.

Eligible shareholders who bid for an amount less than or equal to their pro-rata share of placement shares were allocated their full bid. The remaining shares will be prioritised to existing shareholders.

Settlement of placement shares is expected to occur on December 22 with allotment to occur on December 23.

Following placement completion, CTM says they intend to launch a fully underwritten Share Purchase Plan (SPP) to raise up to $25 million to eligible shareholders at the record date of December 14.

The SPP is expected to open on December 23, at which time additional details of the SPP will be released.

Morgans Corporate acted as the underwriter and lead manager for the placement.

Corporate Travel Management shares are down 5.61 per cent to trade at $21.04 and Helloworld Travel is also in the red, down 6.48 per cent trading at $2.31 at 3:36 pm AEDT.

CTD by the numbers
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