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- Aussie Broadband (ABB) receives firm commitments to raise $114 million via an institutional placement
- A total of 28.5 million ordinary shares will now be issued to institutional, sophisticated and professional investors at $4
- Aussie Broadband will use the money to support growth, develop new products and technology, and increase technology development
- The company has also announced it will be undertaking a share purchase plan to raise a further $10 million which is set to open on September 15
- Aussie Broadband is down 0.65 per cent with shares trading at $4.66 at 3:24 pm AEST
Aussie Broadband (ABB) has received firm commitments to raise $114 million via an institutional placement.
The telecommunications business entered a trading halt on September 7 but did not disclose how much it intended to raise or for what it would use the funds.
The $114 million will be raised through the issue of 28.5 million ordinary shares to new and existing institutional, sophisticated and professional investors at $4.
This price represents a 13.6 per cent discount to Aussie Broadband’s last trading price of $4.63 on September 6 and a 2.6 per cent discount to the 10-day volume-weighted average price.
Aussie Broadband will use the money to support growth, develop new products and technology, and increase technology development to improve network efficiency.
Shares are expected to be allocated and issued on September 15.
Aussie Broadband has also announced it will be undertaking a share purchase plan to raise a further $10 million.
Shares will be priced the same as the placement price of $4 with oversubscriptions to be scaled back.
The plan is expected to open on September 15 and close on October 1, with shares to be allocated on October 8.
Managing Director Phillip Britt is encouraged by the strong support received.
“We greatly appreciate the backing of existing shareholders who participated in the placement and welcome new shareholders who have joined the register as part of the equity raise,” Mr Britt commented.
“There are promising opportunities to execute transformational acquisitions in the business segment that will complement and improve Aussie Broadband’s position in the market.”
Aussie Broadband is down 0.65 per cent with shares trading at $4.66 at 3:24 pm AEST.
