- Buy now, pay later (BNPL) provider IOUpay (IOU) has completed a $50 million placement as it looks to grow its presence in South East Asia
- The Sydney-based company issued 100 million shares at 50 cents each to both new and existing institutional investors
- With the company’s share price soaring over the last week, the issue price represents a 28.57 per cent discount compared to its closing price on February 15 of 70 cents per share
- The proceeds will be used to fund existing operations, including digital payments and BNPL inventories, and support new BNPL product development
- IOUpay is down 14.29 per cent to 60 cents per share
Buy now, pay later (BNPL) provider IOUpay (IOU) has completed a $50 million placement as it looks to grow its presence in South East Asia.
Under the terms of the offering, the Sydney-based company issued 100 million shares to both new and existing institutional investors, locally and internationally at50 cents each.
Shares in IOUpay have soared since a merchant referral agreement with EasyStop was signed on February 9, and the issue price represents a 28.57 per cent discount compared to its closing share price of 70 cents on February 15.
The financing, which was assisted by Clee Capital, received strong investor demand that IOUpay said far exceeded the pre-determined placement limit.
“The company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments and BNPL sectors in South East Asia,” said Aaron Lee, Chairman of IOUpay.
“This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings and accelerate the growth potential of that expansion,” he added.
IOUpay will primarily use the proceeds to fund existing operations in South East Asia, particularly in Malaysia, which include digital payments and BNPL inventories. However, a portion will also go towards the development of new BNPL products.
IOUpay is down 14.29 per cent to 60 cents per share at 10:53 am AEDT.