- Digital mapping stock Nearmap (NEA) is $72.1 million richer after it completed an institutional placement
- The fundraising foray, announced just yesterday morning, has already proved a hit with investors, who bought in at $2.77 a pop
- Now, roughly 26 million shares will be issued to sophisticated, professional and institutional investors
- The cash injection will come in handy as the technology stock progresses work within “strategic growth industry verticals,” such as roofing, insurance and government orders
- Nearmap is also planning a share purchase (SPP) plan with hopes to raise an extra $20 million
- The market hasn’t had the chance to react to Nearmap’s announcement yet — shares are still locked up in the trading halt issued yesterday morning
- NEA stock last traded for $2.89 per share on Wednesday, September 9
Digital mapping stock Nearmap (NEA) is $72.1 million richer after it completed an institutional placement during its latest capital raise.
The fundraising foray, announced just yesterday morning, has already proved a hit with investors, who bought in at $2.77 a pop. That price was at the upper end of the placement’s bookbuild range, but is still a 4.2 per cent markdown compared to Nearmap’s closing price of $2.89-per-share on September 9.
The surge in subscriptions means Nearmap raised the maximum amount available under the placement phase, bringing in over $70 million.
Now, roughly 26 million shares will be issued to sophisticated, professional and institutional investors.
“The strong support our company received from both existing shareholders and new investors is extremely encouraging and I wish to thank them for their endorsement of our strategy,” Nearmap Managing Director and CEO Rob Newman told the market on Friday.
“With an even stronger balance sheet, we are well-positioned to execute on our accelerated growth strategy and will continue to focus on the global opportunity to become the world’s leading provider of subscription-based location intelligence,” he continued.
The cash injection will come in handy as Nearmap progresses work within “strategic growth industry verticals,” such as roofing, insurance and government orders.
The raise will also fast-track Nearmap’s development of the HyperCamera3, an ultra-high altitude, enhanced fidelity capturing system.
Shares offered under the placement will be issued next Wednesday, September 16.
Share purchase plan
Nearmap is also planning a share purchase (SPP) plan with hopes to raise an extra $20 million.
Under the offer, eligible shareholders can buy in for as much as $30,000 in shares.
Stock will be priced at the lower of two options — either at $2.77 per share, or based on a 2.5 per cent discount to the volume-weighted average price (VWAP) of NEA shares up to the SPP’s closing date. For now, that’s slated for October 5.
However, it seems the market hasn’t had the chance to react to Nearmap’s announcement yet — shares are still locked up in the trading halt issued yesterday morning.
NEA stock last traded for $2.89 per share on Wednesday, September 9.