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- Zip Co (Z1P) is looking to expand its overseas influence with the help of a successfully completed $120 million placement
- Zip will issue 22.5 million shares at $5.34 each, a 4.1 per cent discount on its recent trading levels
- On top of the $120 million institutional placement, Zip is also seeking a further $30 million in a non-underwritten share purchase plan (SPP)
- The SPP will open on January 4, with interested shareholders invited to subscribe for up to $30,000 worth of shares
- The funds raised will be used to accelerate growth in Zip Co’s core operations in the U.S., U.K., Australia and New Zealand, as well as in new markets like South Africa, the EU and the Gulf Coast
- Zip Co opened on Thursday trading up 3.77 per cent at $5.78 each
Zip Co (Z1P) is looking to expand its overseas influence with the help of a successfully completed $120 million placement.
Under the offer, Zip will issue 22.5 million shares at $5.34 each, a 4.1 per cent discount on its recent trading levels, with the shares to be issued on December 21.
The placement was brokered by Shaw and Partners and fully underwritten by wealth managers Merrill Lynch Equities Australia.
On top of the $120 million institutional placement, Zip is also seeking a further $30 million in a non-underwritten share purchase plan (SPP).
It will open on January 4, with interested shareholders invited to subscribe for up to $30,000 worth of shares worth $5.34 each.
Zip’s management have big plans for the incoming $150 million, with $85 million already allocated for growth initiatives in the U.S. market.
Another $15 million will be put towards Zip Co’s expansion efforts in the U.K., as well as another $12 million for product expansion in Australia and New Zealand.
“We are grateful for the support of existing shareholders that participated in the
raise, as well new long-term shareholders that joined our register, supporting our
objective of making Zip the first payment choice everywhere and every day,” CEO Larry Diamond said,
“The additional growth capital will enable Zip to capitalise on the successful
acquisition of QuadPay in the US, scale Zip’s operations in the UK, lead the active
pursuit of global growth opportunities and support the launch of Zip Business,” he added.
Interestingly, just under a quarter of the funds have been allocated for growth in non-core markets around the world, as part of a new division within the company focussing on South Africa, the EU and the Gulf Coast.
To this end, the company recently expanded its presence in the U.A.E. by investing in Spotii, a regional buy now, pay later (BNPL) player focussed on markets within the Gulf Cooperation Council.
Along similar lines, Zip Co has also invested in Twisto, a payment platform that currently operates in the Czechia and Poland but is also licenced to operate across Europe.
Zip Co opened on Thursday trading up 3.77 per cent at $5.78 each at 11:21 am AEDT.
