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Kogan.com (ASX:KGN) completes $100M placement

Consumer Discretionary
ASX:KGN      MCAP $510.4M
11 June 2020 16:00 (AEST)
Kogan.com (ASX:KGN) - Founder & CEO, Ruslan Kogan

Source: INTHEBLACK

Despite only being launched yesterday, online merchant Kogan.com (KGN) has completed its $100 million placement.

Yesterday, the company launched the placement and said it will use the money to provide financial flexibility.

A total of 8,733,625 new shares were issued at a price of $11.45 per share.

This price represents a 7.5 per cent discount to the closing price of $12.38 on June 9, and a 7.9 per cent discount to the two-day volume-weighted average price of $12.43.

Shares are expected to settle on June 16 and be allocated on June 17.

“We would like to thank our existing shareholders for their strong support for this capital raising, and also recognise the overwhelming interest from new investors,” Chairman Greg Ridder said.

“We recognise the significant trust placed in our management team to deliver a strong return on your capital, and we have every confidence the team will rise to the challenge,” he added.

The share purchase plan

Kogan.com also announced yesterday that it will undertake a share purchase plan to raise an additional $15 million.

Eligible shareholders will be able to purchase up to $30,000 worth of shares at the same price of $11.45 per share.

As per the discretion of the company, the share purchase plan can either be scaled back or increased.

The share purchase plan will open on June 18 and close on July 3. Shares will then be allocated on July 10 and can begin trading on the ASX on the same day.

After coming out of a trading halt shares in Kogan.com are up a steady 10.3 per cent and trading for $13.66 each at 1:48 pm AEST.

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