WiseTech is looking to add $50 million to the $250 million it is seeking from investors in a placement announced to the market on Tuesday.
The company put its shares into a halt yesterday morning as it announced plans for the raising which CEO, Richard White will give the logistics software company greater scope to add to the 12 companies it has already bought since last July.
A $250 million raising was originally sought but brokers yesterday afternoon suggested that Goldman Sachs and Morgan Stanley said that the company was thinking of adding $50 million to the raising because of strong demand.
WiseTech shares closed at $23.18 on Monday and the placement price is expected to be revealed first thing on Wednesday. A placement without an obvious reason (such as to finance a takeover or merger or asset buy already announced) is rare these days.
The fact that it has been easily got away by the managers tells us the tech boom is alive and well in Australia at the moment.
The issue will be made at a price between $20.30 and $21.50 depending on the strength of institutional demand. The range represents a discount of between 12.4% and 7.2% on Monday’s closing price.
The placement will be followed by a $30 million share purchase plan (SPPP) for small shareholders. “The issue price under the SPP will be the lower of the Placement Price or a 2% discount to the 5-day average price to the Closing Date of the SPP, which is currently scheduled for Thursday, 11 April 2019. Eligible shareholders may apply for up to $15,000 of new ordinary shares under the SPP,” the company said yesterday.
Mr. White said in yesterday’s statement, “Growth is our primary driver and, across the global logistics industry, the opportunity now available to WiseTech is vast. The proceeds of the Offer will be used in the continued disciplined execution of our growth strategy.”
“Through the Offer announced today, we add further strength to our balance sheet and increase the capacity at which we can accelerate our long-term organic growth, through relentless innovation and the acquisition of strategically valuable assets in important new geographies and key adjacencies.”
