- Digital payment specialist IOUpay (IOU) is planning to raise over $10 million through a two-tranche pro-rata placement
- Tranche one will issue over 20.4 million shares at 14.7 cents each to raise $3 million
- The second tranche includes the issue of more than 42.4 million shares at 16.6 cents to raise around over $7 million
- As the placement is on a pro-rata basis, investors who participate in the first tranche will also participate in the second tranche
- Therefore, IOUpay has noted the combined issue price of both tranches is 16 cents — representing an 18.45 per cent discount to the five-day volume-weighted average price
- Funds will be used for salaries and admin costs as well as to accelerate growth in IOUpay’s digital payment inventories and developing new products
- Company shares are trading 7.69 per cent higher for 21 cents
IOUpay (IOU), formerly iSentric, has received binding commitments to raise up to $10,055,300 through a two-tranche placement.
The capital raise received support from new and existing sophisticated and institutional investors and is being led and managed by IOUpay’s lead broker, Barclay Pearce.
20,408,163 ordinary shares are being issued under tranche one. At the general meeting in September, shareholders approved $3 million to be raised at 14.7 cents per share. This issue price represents a hefty 25 per cent discount to the five-day volume-weighted average price (VWAP).
Tranche two includes the issue of 42,437,462 ordinary shares at 16.6 cents each to raise $7,055,300. The issue price represents a 15.31 per cent discount to the five-day VWAP.
Importantly, the placement is being conducted on a pro-rata basis which means if an investor participates in tranche one, then they’re also a participant in tranche two on a pro-rata basis.
Therefore, IOUpay has noted that the combined issue price of both tranches is 16 cents which represents an 18.45 per cent discount to the five-day VWAP prior to the date of the placement.
“This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings,” Chairman Aaron Lee said.
IOUpay provides mobile banking and digital purchase and payment services for Southeast Asia’s banking and corporate sectors.
IOUpay is a digital payment specialist who rebranded from its former name of ‘iSentric’ to ‘IOUpay’ to better reflect its digital banking focus and assist Malaysia and Indonesia as they transition to online banking and buy now, pay later services.
The $3 million raised under tranche one will go towards salaries, professional services, administration, product development, digital payment inventory and marketing development.
The additional $7 million under tranche two will be used to accelerate growth in IOUpay’s digital payment inventories and developing new products.
Company shares are trading 7.69 per cent higher for 21 cents at 10:52 am AEDT.