Afterpay successfully raises $650m via institutional placement

Afterpay Ltd (ASX:APT) today provided an update regarding the capital raising plans announced on Tuesday, July 7, 2020.

The company says it has successfully completed a fully underwritten institutional placement of 9.8 million ordinary shares at AUD 66.00 per share, to raise AUD 650 million.

Pricing for the placement was determined via an institutional bookbuild, with an underwritten floor price of $61.75 per share. The placement ultimately priced at $66.00 per share, which represents a 2.9% discount to the close of trade on July 6, 2020.

New shares issued under the placement will rank equally with Afterpay’s existing shares. Settlement of the placement is scheduled to occur on July 10, 2020, with the Placement Shares scheduled to be allotted through the ASX and to commence trading on July 13, 2020.

Concurrent with the placement and as part of the institutional bookbuild, Anthony Eisen and Nicholas Molnar have sold 2.05 million shares each at the placement price of $66.00 per share.

Mr. Eisen and Mr Molnar have each confirmed their intention to remain as supportive and committed investors in Afterpay, and have committed to not sell any further shares until after the company’s 2020 AGM.

As previously announced, Afterpay will offer eligible shareholders the opportunity to purchase new shares in Afterpay under a Share Purchase Plan (SPP). Shares issued under the SPP will be issued at the lower of $66.00, being the Placement price, and the 5-day VWAP of Afterpay shares up to the SPP closing date.

Shareholders on the Afterpay register at 7:00pm (Sydney time) on 6 July 2020 with a registered address in Australia or New Zealand will be entitled to subscribe for up to $20,000 worth of Afterpay shares through the SPP, subject to eligibility criteria and other terms and conditions of the SPP which will be set out in the SPP booklet and dispatched to eligible shareholders in due course.

The SPP aims to raise approximately $150 million.