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Evolve Education Group (ASX:EVO) enters trading halt ahead of $22M placement

The Market Online Deal Room
ASX:EVO      MCAP $141.2M
31 March 2021 14:10 (AEDT)

Evolve Education Group (EVO) has entered a trading halt as it plans a capital raise.

While not too many details have been given yet, the company did say it is planning to raise up to $22 million through a placement to eligible investors in New Zealand, Australia, Hong Kong, Singapore and U.K.

However, it is not yet clear what the company will use the money for.

EVO plans on announcing the full details and result of the placement on Tuesday April 6, with shares remaining in a trading halt until then.

Evolve Education Group is a New Zealand-based childcare specialist with several different childcare chains under its belt. In total, the company owns 117 centres.

Earlier this month, the company purchased 10 childcare centres around Australia for $27.13 million.

The new childcare centres each have a licensed capacity of 816 children per day with expected earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be $6.93 million per year.

Additionally, EVO’s New Zealand CEO, Tim Wong, has recently retired from his role to return to his family in Australia.

EVO’s shares last traded at $1.20 on March 30.

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