- Buy-now-pay-later service Zip Co (Z1P) is raising $60 million to fund its global expansion
- The company says it wants to capitalise on the $630 billion flexible payment market in the U.K.
- While the company awaits the raise, it has entered a trading halt until next Tuesday.
- Zip’s last closing price is $3.92 per share
Buy-now-pay-later service Zip Co (Z1P) will raise $60 million to fund its expansion into the U.K. market.
Professional and sophisticated investors will have the chance to buy into the company at $3.70 per share to raise $50 million. Additionally, a share purchase plan will be open to all eligible shareholders to raise another $10 million.
The offer price marks a 5.6 per cent reduction from yesterday’s closing price and a 4.7 per cent discount from its 10-day volume-weighted average price.
In today’s release to the market, Zip said it plans to capitalise on the $630 billion buy-now-pay-later market in the U.K. On top of this, raised funds will also be used for product development.
The company is working on upgrading its services to benefit small businesses and further tech advancements as it continues its global expansion.
While Zip prepares for its capital raising, it has entered a trading halt until next week, December 3, 2019. Zip’s last closing price is $3.92 per share
At Zip’s Annual General Meeting, it highlighted over the past five years it has recorded at least a 100 per cent growth in revenue annually. The company currently has 1.6 million customers, 20,000 retail partners and over 45,000 points of acceptance.