- Corporate Travel Management (CTD) has completed the retail component of its entitlement offer, raising another $113 million
- Combined with the institutional offer, the company has successfully raised $375 million in additional capital
- CTD said the recent entitlement offer was heavily subscribed for, with a take up rate of almost 82 per cent
- It also received $53 million in applications for its top-up facility, prompting the company to implement a scale-back
- Eligible shareholders will receive their allocated new shares on October 22, with the shares to commence trading on October 23
- CTD has closed today’s session down a slight 0.46 per cent, worth $17.49
ASX-200 lister Corporate Travel Management (CTD) has completed the retail component of its entitlement offer, raising another $113 million.
Combined with its recently completed institutional offer, the company has successfully raised a total of $375 million in additional capital.
Retail offer
Under the retail entitlement offer, shareholders were able to subscribe for one new share for every 4.03 already held, with shares priced at $13.85.
The travel company said the offer was heavily subscribed for, with a total of $92 million in offers received — representing a take-up rate of almost 82 per cent.
Along with the strong take-up rate, CTD said it also received $53 million in applications for its top-up facility.
Due to the demand, Corporate Travel Management has elected to scale-back applications on a pro-rata basis.
The ASX-200 company expects a total of eight million new shares to be allocated on October 22, with the new shares to commence trading on October 23.
The acquisition
CTD has flagged using the majority of the $375 million raised from the entitlement offer on acquiring the U.S. based Travel and Transport business.
Speaking on the recently completed capital raise, the company’s Managing Director and CEO Jamie Pherous said he was pleased with the strong support.
“The strong support for the capital raising from retail and institutional investors is an endorsement of the strategic rationale for acquiring Travel and Transport,” Jamie said.
“Completion of the acquisition is expected to occur on October 30, 2020, and we are looking forward to progressing the integration of the business to deliver new benefits for our clients,” he added.
Shares in Corporate Travel Management have closed today’s session down a slight 0.46 per cent, worth $17.49.