Zip Co (ASX:Z1P)
has raised $148.7 million via an institutional placement following a proposed takeover of payments company Sezzle announced yesterday.
The buy-now-pay-later giant said the funds will help strengthen its balance sheet and provide Zip more capital runway to execute on the potential synergies from its proposed acquisition of Sezzle.
Under the placement, Zip will issue around 78.3 million new shares for $1.90 per share, which represents a 14 per cent discount to Zip’s closing price last Friday.
Following completion, Zip shareholders will have the opportunity to participate in a non-underwritten share purchase plan to raise up to $50 million.
Shares in Zip Co (ASX:Z1P)
are trading 8.1 per cent lower at $2.03.