- Openpay (OPY) has capped off a great week and announced a $33.77 million equity raise through an oversubscribed institutional placement
- It follows Monday’s announcement that the company had secured a £25 million (approximately A$45.44 million) debt funding facility
- On top of the additional equity, Openpay also announced that the month of May was its highest ever growth month
- Managing Director and CEO, Michael Eidel, said its positive momentum was reinforced after several leading institutions reached out offering funding to accelerate our growth plans
- Openpay is up 170 per cent compared to this time last week, finishing the day 16.25 per cent higher and selling shares for $3.51 each
Buy now pay later company, Openpay (OPY), has capped off a great week after it announced a $33.77 million equity raise through an oversubscribed institutional placement.
It comes after the company announced it had secured a £25 million (approximately A$45.44 million) debt funding facility on Monday, it also reported that the month of May was its highest ever growth month.
The good news has culminated in the company’s share price soaring a whopping 170 percent in the last seven days, when shares sold for $1.30 each on Thursday May 28 compared to today’s closing price of $3.51.
“Our positive momentum has been further reinforced after several leading institutions reached out offering funding to accelerate our growth plans. We are pleased to have been offered this show of support and look forward to deploying the capital to further grow the business.”
Openpay Managing Director and CEO, Michael Eidel.
The placement
The company reports it’s received inbound interest and binding commitments from new and existing institutional investors to subscribe for 14,069,742 shares, raising approximately A$33.77 million at $2.40.
Extraordinarily, the issue price represents a 9.8 per cent premium to the five day volume weighted average price (VWAP) of $2.185, a 12.1 per cent discount to the one day VWAP of $2.730 and a 20.5 per cent discount to the last closing price yesterday of $3.020, after Onepay’s share price shot up 50 per cent yesterday.
It’s expected that the placement will settle within the next week.
Cashed up and open for business
Earlier this week, Openpay announced it had secured a U.K. funding facility for £25 million (approximately A$45.44 million) with Global Growth Capital (GGC).
The funds were generated to help grow the U.K business, which has become a significant contributor to its total transaction value, and is in addition to the existing $75 million worth of debt facilities in place.
Off the back of today’s announcement, Openpay Managing Director and CEO, Michael Eidel said it was full steam ahead to grow the company further.
“We have consistently delivered on our growth strategy and there was a strong response this week to the news that Openpay had both secured debt funding for our UK business and reported record growth,” Mr Eidel said.
“The buy now pay later sector has seen significant uptake from consumers and merchants since its introduction and has proven its value in the extraordinary times of COVID-19.”
“The combination of the macro environment and the way we’ve been servicing our customers has enabled us to take the business to new heights.”
Openpay Managing Director and CEO, Michael Eidel.
Openpay has finished the day 16.25 per cent higher and is selling shares for $3.51 each.