Australian fintech firm Sezzle raises A$79.1m via institutional placement

Maria Nikolova

Proceeds will be used to accelerate Sezzle’s growth strategy and strengthen its balance sheet.

Installment payment platform Sezzle Inc (ASX:SZL) today provided an update in relation to its capital raising announced to the ASX on Friday, 10 July. Sezzle says that it has successfully completed a fully underwritten institutional placement of 14.9 million CDIs at $5.30 per CDI, to raise A$79.1 million before costs associated with the placement.

Pricing for the Placement was determined via a bookbuild process with an underwritten floor price of $5.00 per CDI. The placement ultimately priced at $5.30.

At the placement price, Sezzle is issuing approximately 14.9 million CDIs under the placement (Placement Securities), representing 8.4% of the company’s existing issued capital. The Placement Securities are expected to settle on Wednesday, 15 July 2020, and will be issued and commence trading on the ASX on Thursday, 16 July 2020.

As previously announced, Sezzle will offer existing eligible CDI holders the opportunity to participate in a non-underwritten SPP to raise approximately A$7.2 million.

Under the SPP, eligible Sezzle CDI holders, being CDI holders with a registered address in Australia or New Zealand on Sezzle’s register as at 7.00 pm (Sydney time) on Thursday, 9 July 2020 (Eligible Holders), will have the opportunity to apply for up to A$30,000 of CDIs (SPP Securities) without incurring brokerage or other transaction costs.

CDIs under the SPP are to be issued at the Placement Price, namely $5.30 per new CDI subscribed for in the SPP.

The SPP offer period is expected to open on Friday, 17 July 2020 and is expected to close at 5.00pm (Sydney time) on Tuesday, 4 August 2020.

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