ASX places securities of Zip Co in trading halt

Maria Nikolova

The company, which offers point-of-sale credit and digital payment services, has requested the trading halt pending an announcement in relation to a proposed acquisition and capital raising.

ASX today announces that the securities of digital retail finance and payments services provider Zip Co Ltd (ASX:Z1P) have been placed in trading halt at the request of the company.

The company sought that an immediate trading halt be granted by ASX with respect to its ordinary shares. Zip Co advises that:

  • the trading halt is requested pending an announcement by the company in relation to a proposed acquisition and capital raising;
  • the company wishes the trading halt to remain in place until it releases an announcement in relation to the transactions, or until the commencement of trading on Wednesday, 3 June 2020, whichever is earlier;
  • the company is seeking the trading halt to assist in managing its disclosure obligations and maintaining an orderly market in the trading of the company’s shares, and to ensure that trading does not take place in an uninformed market.

Let’s recall that Zip Co’s latest trading update revealed a set of solid metrics. For the month ending April 30, 2020, Zip Co posted revenue of $15.1 million, up 81% in annual terms ($45m in Q3).

Monthly transaction volume amounted to $181.6 million, up 86% year-on-year. Receivables totalled $1.2 billion, up 97% year-on-year.

Customer numbers increased to 2 million, up 66% from a year earlier, whereas merchant numbers increased to 23,100, up 50% from a year earlier.

Customer repayment success rates were higher or on par with pre COVID-19 rates, with hardship assistance for customers peaking at end of March (less than 0.08% of receivables).

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