- Buy now, pay later company Zip Co (Z1P) has completed its share purchase plan (SPP) which raised over $56.73 million
- The share purchase plan followed the completion of a $120 million placement to fund growth initiatives in the U.S., U.K., Australia and New Zealand
- While the billion-dollar fintech aimed to raise $30 million, the SPP saw incredible support — resulting in oversubscriptions of more than $26.7 million
- In the end, over 10.7 million new ordinary shares were issued at $5.29
- The new shares will be allocated this Wednesday and are expected to be quoted on the ASX on the following day
- Company shares are trading 1.07 per cent higher at $5.67
Zip Co (Z1P) has completed its share purchase plan and raised $56,739,524.
Importantly, the buy now, pay later company received immense support for its share purchase plan (SPP), which allowed eligible shareholders to subscribe for up to $30,000 worth of new shares.
When Zip announced the SPP in December, it sought out to raise $30 million. As the SPP allowed Zip to scale back applications and/or accept oversubscriptions, it took full advantage and accepted oversubscriptions of $26,739,524.95.
When details of the SPP were released on December 23, it forecast an issue price of $5.34. However, that figure could be adjusted to an issue price lesser than the five-day volume-weighted average price (VWAP) on January 13.
In the end, 10,724,674 new ordinary shares were issued at $5.29.
The new shares are scheduled to be allocated on Wednesday, January 20, and are expected to be quoted on the ASX on the following day.
The SPP followed the completion of Zip's $120 million placement to new and existing institutional, sophisticated and professional investors.
The money raised is being put towards growth initiatives in the U.S. market, as well as expansion in the U.K and product growth across Australia and New Zealand.
Company shares are trading 1.07 per cent higher at $5.67 at 10:10 am AEDT.