- Australian Finance Group (AFG) has announced a $60 million equity raising to strengthen its capital position and support growth
- This $60 million will be raised through a $45 million one for 5.5 entitlement offer and a $15 million placement
- Shares for both the entitlement offer and placement will be priced at $1.15 each
- Following the equity raising, AFG will have a cash and cash equivalent balance of $112 million and its balance sheet will be debt free
- AFG has ended the day with no change and shares trading for $1.39 each
Australian Finance Group (AFG) has announced a $60 million equity raising to strengthen its capital position and support growth.
This $60 million will be raised through a $45 million one for 5.5 entitlement offer and a $15 million placement.
Shares for both the entitlement offer and placement will be priced at $1.15 each which represents a 17.3 per cent discount to the closing price of company shares on May 12 of $1.39.
A total of 52 million shares will be issued.
As stated before, AFG will use the money to strengthen its capital position, provide liquidity, and support growth.
This $60million will add onto AFG’s existing cash balance of $52 million, as of April 30.
Following the equity raising, AFG will have a cash and cash equivalent balance of $112 million. In addition, the company’s balance sheet will be debt free once completed.
“AFG is taking action to reinforce its balance sheet to enable the company to navigate current market uncertainties from a position of strength and ensure we remain well positioned for continued growth,” CEO David Bailey commented.
“We expect the COVID-19 pandemic will change the way people do business in the short to medium term, if not permanently,” he said.
“Equity raised will assist AFG to ensure our brokers are at the forefront of technology to support their customers, make their workflow more efficient and accelerate the enhancement of our digital platform to drive competition in the leading market,” he added.
AFG has ended the day with no change and shares trading for $1.39 each in a $299.6 million market cap.