The SG Fleet Group Ltd (ASX: SGF) share price is on the move in early trade. Shares in the Aussie fleet management and novated leasing company are steady this morning despite a capital raising update before the bell.
Why is the SG Fleet share price worth watching?
SG Fleet this morning announced the successful completion of its retail capital raising. The company raised $15 million under the 1 for 7.44 pro rata, accelerated, non-renounceable offer announced on 31 March 2021.
That money was raised at $2.45 per share with a take-up rate of approximately 78%. The SG Fleet share price is steady at $3.02 right now despite the steep discount on the capital raise.
Including the institutional component, SG Fleet’s capital raise netted the company $86 million. Approximately 6 million new shares will be issued and allotted on Friday under the Retail Entitlement Offer.
The SG Fleet share price has been steady in early trade and will be one to watch throughout the day.
How has the company performed recently?
Prior to the market open, SG Fleet had a market capitalisation of $880.1 million and boasted a 3.4% dividend yield.
Shares in the Aussie fleet manager have surged higher in 2021, climbing 26.4% through to yesterday’s close. Those gains have come despite a disappointing half-year result which saw the company shed 7% of its market value in one day.
However, the company’s planned acquisition of LeasePlan ANZ has helped turn things around in 2021. Funds from this capital raise will go towards the $387 million purchase of the company.
SG Fleet expects the acquisition to be earnings per share (EPS) accretive in FY2022 and FY2023.
The Aussie fleet manager is targeting an enterprise value of $1.5 billion following the LeasePlan ANZ acquisition.
The SG Fleet share price is one to watch throughout the year following the takeover which will increase its fleet to approximately 103,000 vehicles across 9 locations in Australia and New Zealand.
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More reading
- Why the SG Fleet (ASX:SGF) share price surged 10% today
- Why the SG Fleet (ASX:SGF) share price is one to watch next week
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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