- Corporate Travel Management (CTD) has raised $262 million via an institutional entitlement offer
- 90 per cent of eligible shareholders subscribed for the offer, with shares on offer at $13.85 each
- The company also plans to raise an additional $113 million via the retail component of the fully underwritten entitlement offer
- CTD first flagged the capital raise at the start of this week when it entered a trading halt
- It has since announced the funds raised will go towards acquiring Travel and Transport for US$200.4 million (roughly A$280.4 million)
- Shares in CTD have opened trading for $17.77, up 13.2 per cent
ASX 200 travel company Corporate Travel Management (CTD) has successfully raised $262 million via an institutional entitlement offer.
CTD said around 90 per cent of eligible shareholders subscribed for the offer, with one new share handed out for every 4.3 shares already held.
New shares were priced at $13.85 each, with all of the shortfall shares snatched up by other investors.
Along with the institutional entitlement offer, the company also plans to raise an additional $113 million via the retail component of the fully underwritten offer.
That offer will open on Tuesday, October 6, and close on Thursday, October 15 — with shareholders again able to subscribe for one new share for every 4.3 already held.
Corporate Travel Management first flagged this capital raise at the start of this week, when it entered a trading halt.
Since then, the company has announced the majority of the $375 million in additional funds will go towards its acquisition of the U.S. based business Travel and Transport.
CTD will spend around US$200.4 million (roughly A$280.4 million) to acquire the company, which last year had a total transaction value of US$2.8 billion (roughly A$3.9 billion).
Following the announcement of the successful institutional offer, CTD shares have opened trading for $17.77 each — up over 13 per cent at 10:25 am AEST.