- Fleet management tech company EROAD (ERD) closes its oversubscribed share purchase plan (SPP) after receiving roughly $41 million in applications
- The figure represents a 267 per cent increase on the $15.3 million originally sought to partially fund the company’s acquisition of Coretex
- EROAD has resolved to accept only some of the oversubscriptions, taking the total amount raised by the SPP to $19 million
- Shares are down 0.67 per cent at $5.92 each at 1:05 pm AEST
EROAD (ERD) has closed its NZ$16.1 million (A$15.3 million) share purchase plan (SPP) following strong shareholder support, with applications totalling almost NZ$43 million (A$41 million).
The SPP forms part of ERD’s capital raising efforts to partially fund its proposed acquisition of Coretex, announced last month.
The transaction gave eligible investors in the fleet management company the chance to apply for up to NZ$32,000 (A$30,000) in new shares. This attracted applications from 3127 shareholders at an average amount of roughly NZ$13,700 (A$13,100).
Notably, these applications represent a 267 per cent increase on the amount originally sought and have prompted the company to accept oversubscriptions of NZ$3.9 million (A$3.7 million).
All up, the combined initial SPP amount and accepted oversubscriptions come to NZ$20 million (A$19 million) in raised funds.
Accordingly ERD said the selection process would see applications scaled on a proportionate basis and in line with the number of EROAD shares held by applicants on the record date of July 13.
ERD Chair Graham Stuart said he was delighted to see the acquisition gain the backing of investors.
“We have seen strong support through the many conversations we have had with shareholders, the 100 per cent shareholder vote in favour of the transaction and the oversubscribed placement and share purchase plan,” he said.
Shares issued under the SPP will be priced at NZ$5.58 (A$5.30) each, with settlement and allotment expected to occur on August 13.
Trading is slated to commence on the NZX the same day, with trade on the ASX to follow on August 16.
Refunds of surplus application amounts will be paid to applicants on August 17.
EROAD shares were down by 0.6& per cent to $5.92 each at 1:05 pm AEST.