Dicker Data (ASX:DDR) - Chairman & CEO, David Dicker
Chairman & CEO, David Dicker
Source: The CEO Magazine
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  • Despite only being announced yesterday, Dicker Data (DDR) has successfully completed its $50 million placement
  • Yesterday, the computer hardware and software distributor announced that it is looking to raise $55 million to support its long-term growth objectives
  • Approximately 7.5 million shares were issued at a price of $6.70 per share
  • The remaining $5 million will be raised through a share purchase plan that will allow eligible shareholders to purchase up to $30,000 worth of shares
  • Dicker Data has ended the day 1.11 per cent in the red with shares trading for $7.10 each

Despite only being announced yesterday, Dicker Data (DDR) has successfully completed its $50 million placement.

Yesterday, the computer hardware and software distributor announced that it is looking to raise $55 million to support its long-term growth objectives.

Under the placement approximately 7.5 million shares were issued at a price of $6.70 per share. This represented a 6.7 per cent discount to the closing price of $7.18 on May 6 and a 4.6 per cent discount to the five-day volume weighted average price of $7.02.

Shares are expected to settle on May 12, and be issued and begin trading on the ASX on May 13.

“We are pleased at the success of this equity raising, and see it as clear endorsement of Dicker Data’s long-term growth objectives,” Chairman and CEO David Dicker commented.

“We are thankful to our existing and new shareholders for this support, and we welcome our new shareholders,” he said.

The remaining $5 million will be raised through a share purchase plan.

Under the share purchase plan, eligible Australian and New Zealand shareholders will be able to purchase up to $30,000 worth of shares.

Dicker Data has the right to accept more, or scale back extra applications.

The exact price is unknown at the moment, but shares will be the lower of the placement price or a two per cent discount to the five-day volume-weighted average price of the days up to, and including, the closing date.

The share purchase plan will open on May 14, close on May 29, and share will be distributed on June 5. Shareholders can then begin trading on the ASX on June 9.

Dicker Data has ended the day 1.11 per cent in the red with shares trading for $7.10 each in a $1.164 billion market cap.

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