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Zip CO (ASx:Z1P) - CEO, Larry Diamond (front)) - The Market Herald
CEO, Larry Diamond (front))
Source: Retailbiz
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  • Zip Co (Z1P) has announced a share purchase plan (SPP) to raise $30 million
  • At this stage, shares will be issued at $5.34 each, but that figure could be adjusted down depending on the share price movement in the lead up to the offer close on January 13
  • This comes after a recent capital raise that netted the company $120 million
  • The money will be used to fund Zip's U.S. Growth, U.K. expansion and support the local business
  • Z1P is 1.76 per cent higher in early trade at $5.20

Zip Co (Z1P) has announced a share purchase plan (SPP) to raise $30 million.

It comes on the back of a recent $120 million capital raise, where Zip raised the capital from institutions and sophisticated investors.

The SPP offer closes on January 13, with eligible shareholders able to buy up to $30,000 worth of shares at $5.34. However, that figure could be adjusted downwards should the five-day volume-weighted average price (VWAP) on January 13, less 2 per cent, be lower. The lesser of the two figures will be used.

For example, if the five-day VWAP on January 13 is $5.60, a 2 per cent discount will be given, meaning a share price of roughly $5.49. In this instance, the lesser amount of $5.34 will be the issue price.

Conversely, if the five-day VWAP on January 13 is $5.20, a 2 per cent discount will be given, meaning a share price of $5.09. In this example, $5.09 will be the issue price.

It's been a big 2020

It has been a tumultuous year for the Z1P share price. The company bottomed out at $1.05 in the depths of the COVID-19 crisis in March, before storming to a high of $10.64 in late August.

Some notable announcements throughout 2020 include Zip signing a partnership agreement with online retail giant eBay and penning a supply deal with Australian household name Harvey Norman (HVN).

Zip intends to use the proceeds from the SPP to fund its U.S. growth, U.K. expansion, and to support continued investment in Australia and New Zealand’s product range, including the scaling of Zip Business.

Z1P shares have opened higher this morning, trading up 1.76 per cent at $5.20 at 10:10 AEDT.

Z1P by the numbers
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