FlexiGroup (ASX:FXL) pockets $79M from institutions as part of $140M entitlement offer

• Fintech company FlexiGroup (FXL) has completed the first part of its major capital raising plan today, bagging $79 million from institutional investors
• The company is planning to raise a total of $140 million from retail and institutional investors, with the raise underwritten to $115 million
• Under both segments of the entitlement offer, shareholders can cop one new share for every 3.2 already held at $1.14 each
• Once the new shares issued under the institutional offer settle on Wednesday, September 2, the retail segment of the offer will open
• Shares in FlexiGroup came out of a two-day trading halt this morning and have since slipped 4.98 per cent, currently worth $1.24 each

Fintech company FlexiGroup (FXL) has completed the first part of its major capital raising plan today, bagging $79 million from institutional investors.

The company announced the capital raise just two days ago, seeking $140 million from retail investors and institutions.

The company said it had strong support for the institutional segment of the raise, with investors taking up 99 per cent of what they could under the terms of the offer.

Under the entitlement offer, institutional shareholders were offered one new share for every 3.2 held, priced at $1.14 a pop. The raise is underwritten to $115 million.

FlexiGroup CEO Rebecca James said the company is appreciative of the “overwhelming” support from shareholders for the capital raise.

“This is an exciting time to be a shareholder, as we continue to execute on our strategy, and grow the business profitably under the humm brand,” Rebecca said.

The new shares from this first segment of the raise are expected to settle on Wednesday, September 2.

Upcoming retail offer

While institutions had first dibs on the discounted price, mum and dad investors wanting to top up their holding will have a chance when the first lot of new shares are settled.

The retail segment of FlexiGroup’s capital raise will open on Wednesday, September 2, and closed on Tuesday, September 15.

Like under the institutional offer, retail investors will be able to subscribe for one new share for every 3.2 held at $1.14 each.

FlexiGroup said while the new funds will go towards supporting general growth, a particular focus will be placed on the company’s buy now, pay later brand, humm.

Shares in FlexiGroup came out of a two-day trading halt this morning and have since slipped 4.98 per cent. FXL is currently trading at $1.24 per share.