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- Automotive company Bapcor (BAP) has successfully completed an $180 million institutional placement
- Approximately 40.9 million new fully paid shares were issued to institutional investors at a price of $4.40 each
- Just yesterday Bapcor announced that it would be raising $210 million to reduce its debt and carry-out its five-year strategy
- The remaining $30 million will be raised through a share purchase plan
- Shareholders will be able to purchase up $30,000 worth of shares until the offer closes mid-next month
- Bapcor shares are trading 5.41 per cent in the green and selling for $5.07 each
Automotive company Bapcor (BAP) has successfully completed an $180 million institutional placement.
Announced to the market only yesterday, Bapcor is looking to raise a total of $210 million to reduce its debt and carry-out its five-year strategy.
The company has had to withdraw its earnings guidance and has put a number of cost-cutting measures in place.
The remaining $30 million will be issued through a share purchase plan.
In regards to the placement, approximately 40.9 million new fully paid shares were issued to institutional investors at a price of $4.40 per share.
Significant interest was gained from both exisiting and new shareholders, however, the shares were primarily issued to existing ones.
“We are very pleased with the demonstration of support shown by our shareholders and other institutional investors for the placement,” CEO and Managing Director Darryl Abotomey commented.
“We see the success of the placement as a clear endorsement of Bapcor’s strong and resilient business and our strengthened position to continue to execute our five-year strategy and any other growth initiatives that may arise,” he added.
The shares are expected to settle on April 21 and new shares will be issued the following day and can begin trading on the ASX on the same day.
Following the completion of the placement, Bapcor is offering all eligible shareholders the opportunity to take part in a share purchase plan to raise the remaining $30 million.
Shareholders will be able to purchase up to $30,000 worth of shares.
While the exact price isn’t known yet it will be less than the placement and have a two percent discount to the five-day volume weighted average price (VWAP) of Bapcor shares up to, and including, the closing date of the share purchase plan.
The share purchase plan will close on May 15 and can begin trading on May 25.
Bapcor shares are trading 5.41 per cent in the green and selling for $5.07 each at 2:51 pm AEST.
