Buy now pay later company, Afterpay (ASX:APT) has today announced plans to undertake a fully underwritten institutional placement of new shares to eligible investors, to raise a minimum of $300 million.
Pricing will be determined via an institutional bookbuild, with an underwritten floor price of $21.75 per New Share.
Funds raised will support Afterpay’s mid-term strategy which includes accelerated investment in global expansion.
Afterpay says it expects operating leverage and earnings growth as the company scales towards its end FY2022 target of over A$20 billion gross merchandise volume (GMV) and net transaction margin of 2 per cent (post accounting changes).
Alongside the sell-down Afterpay founders, Anthony Eisen, Nicholas Molnar and David Hancock have agreed to
sell 2.05m, 2.05m and 0.40m shares respectively (Secondary Sell-down).
The Secondary Sell-down will be allocated to two US cornerstone investors, Tiger Management and Woodson Capital.
Afterpay Touch Group (ASX:APT) is currently in a trading Halt it Last traded at $24.17.