Day: 15 May 2023

May has turned out to be a fairly lacklustre month for ASX shares and the share market so far. Since the start of the month, the ASX 200 has shed around 0.6%. But that means it’s a better time to buy shares now, as opposed to the start of the month. So let’s talk about two ASX exchange-traded funds (ETFs) that could be worth buying right now.

These ETFs aren’t your plain-Jane index funds either and could bring an exotic touch to an ASX portfolio.

2 exotic ETFs worth a buy this May

BetaShares Global Cybersecurity ETF (ASX: HACK)

It’s almost tempting to recommend this sector-specific ETF just on its innovative ticker code alone. But let’s resist this temptation and take a look under the hood here. So this ETF holds a basket of companies from around the world that all offer products and services in the cybersecurity space.

Cybersecurity is arguably one of the best-placed industries for growth over the coming decades. The size and scope of internet use is only getting larger across all corners of society, and as it does, using the internet safely and securely will increase in importance.

That’s why this ETF is one of the funds worth checking out this May. It holds companies like Fortinet, Palo Alto Networks, Cisco Systems and Okta in its portfolio, which are all global leaders in cybersecurity solutions. This ETF has returned an average of 12.47% per annum over the past five years, and 14.32% per annum since inception in 2016. There are no guarantees in investing, but I am confident this sector’s best days are far ahead of 2023.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF from VenEck is a little different. It invests in a portfolio of select American shares that are chosen for their possession of a ‘wide moat’. A ‘moat’ is a term coined by the legendary Warren Buffett, and refers to a company’s intrinsic protections that it possesses against its competition. This could come in the form of a strong brand (think Apple or Coca-Cola), or else its ability to offer lower prices than its competitors (perhaps a Coles Group Ltd (ASX: COL) or Amazon).

Companies that this ETF selects all have something along these lines, according to the provider. So it’s no surprise to see Amazon and Buffett’s own Berkshire Hathaway within this ETF’s current portfolio, alongside other names like Adobe, Pfizer, Boeing and Domino’s Pizza.

Over the past five years, this ETF has returned an average of 16.61% per annum, and 15.41% per annum since inception in 2015.

The post 2 high-return exotic ETFs to buy in May appeared first on The Motley Fool Australia.

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More reading

• 2 high-quality ASX ETFs for income and buy and hold investors
• 3 of the best ETFs for ASX investors to buy this month
• Why these 2 ASX ETFs could be great options to buy for growth
• Invest like Warren Buffett with this ASX share to grow your wealth enormously
• 2 top ASX ETFs I’d buy with the goal of long-term capital growth

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe, Amazon.com, Apple, Berkshire Hathaway, Boeing, Coca-Cola, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Amazon.com, Apple, Berkshire Hathaway, BetaShares Global Cybersecurity ETF, Cisco Systems, Domino’s Pizza, Fortinet, Okta, Palo Alto Networks, and Pfizer. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $420 calls on Adobe, long January 2024 $47.50 calls on Coca-Cola, and short January 2024 $430 calls on Adobe. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and Coles Group. The Motley Fool Australia has recommended Adobe, Amazon.com, Apple, Berkshire Hathaway, Okta, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) moved in and out of the red on Monday, eventually closing 0.14% higher at 7,267.1 points.

Driving its gains was the S&P/ASX 200 Materials Index (ASX: XMJ). It jumped 0.8%, with gold stocks among its top performers. That was despite the price of the yellow metal closing last week slightly lower.

The S&P/ASX 200 Energy Index (ASX: XEJ) also outperformed, rising 0.6%, while the S&P/ASX 200 Real Estate Index (ASX: XRE) jumped 0.8%.

But it wasn’t green across the boards today. The S&P/ASX 200 Financials Index (ASX: XFJ) struggled on Monday, slumping 0.8%. The ANZ Group Goldings Ltd (ASX: ANZ) share price was the sector’s worst performer, falling 4% as the stock traded ex-dividend.

So, with all that covered, let’s take a look at the ten ASX 200 shares outperforming all others in the first session of the new week.

Top 10 ASX 200 shares countdown

The index’s biggest gain on Monday was posted by shares in funeral services provider InvoCare Ltd (ASX: IVC).

The stock launched 12.1% to close at $12.43 after the company fielded a $13 per share takeover bid.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
InvoCare Ltd (ASX: IVC)	$12.43	12.08%
Silver Lake Resources Ltd (ASX: SLR)	$1.095	7.88%
News Corp (ASX: NWS)	$27.27	5.05%
Sayona Mining Ltd (ASX: SYA)	$0.225	4.65%
Evolution Mining Ltd (ASX: EVN)	$3.94	4.23%
Regis Resources Ltd (ASX: RRL)	$2.15	3.86%
West African Resources Ltd (ASX: WAF)	$0.99	3.66%
De Grey Mining Ltd (ASX: DEG)	$1.49	3.47%
Gold Road Resources Ltd (ASX: GOR)	$1.935	2.93%
Perseus Mining Ltd (ASX: PRU)	$2.12	2.91%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why InvoCare, Newcrest, Silver Lake, and Silver Mines shares are rising today
• InvoCare shares rocket 11% today on sweetened $2.2 billion takeover offer
• 3 reasons I’m tipping the Telstra share price to keep rising in 2023
• Did you invest $5,000 in Evolution Mining shares in 2018? If so, here’s how much dividend income you’ve earned

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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If you’re an income investor, you will no doubt have considered the Rio Tinto Ltd (ASX: RIO) dividend at some point.

And there’s certainly good reason for this. The mining giant regularly shares a large portion of its profits with investors in the form of dividends.

This has seen billion of dollars returned to shareholders over the last few years, much to their delight.

But that was then and this is now. Will we be able to say the same in the future or are the dividend glory days behind us? Let’s take a look and find out.

Rio Tinto dividend forecast

According to a recent note out of Goldman Sachs, its analysts are expecting Rio Tinto to continue paying generous dividends for the foreseeable future.

After paying a fully franked US$4.92 per share dividend in FY 2022, Goldman expects an increase to US$5.36 per share this year. This equates to A$8.07 per share based on current exchange rates.

And with the Rio Tinto share price currently fetching $108.45, it will mean a sizeable 7.45% fully franked yield for income investors. Not bad considering the market average usually sits at around 4%.

What about next year?

Unfortunately, Goldman Sachs is expecting Rio Tinto’s earnings to soften a touch in FY 2024. It believes this will force the mining giant to cut its dividend to US$4.68 per share or A$7.04 in local currency.

The good news, though, is that this will still mean a greater than average dividend yield for investors of 6.5%.

Should you invest?

As well as expecting the Rio Tinto dividend yield to be large in the next couple of years, the broker also sees scope for its shares to rise meaningfully.

Goldman currently has a buy rating and $136.20 price target on its shares. This implies potential upside of 25% for investors from current levels.

All in all, the broker is expecting some very strong returns over the next 12-18 months. So, if you’re not averse to investing in the mining sector, it could be well worth considering Rio Tinto.

The post How big will the Rio Tinto dividend be next year? appeared first on The Motley Fool Australia.

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More reading

• Could the iron ore price slide below $100 US dollars in 2023?
• Why are ASX 200 mining stocks having such a shocking end to the week?
• This ASX small-cap lithium share is leaping 13% on a deal with Rio Tinto
• ASX 200 mining shares in focus: Top broker says current iron ore price is ‘unsustainable’
• Analysts say buy these top ASX dividend stocks with 5%+ yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has kicked off the trading week on a volatile note so far this Monday. After starting out in the green, the ASX 200 has spent most of the day in red territory this session but has bounded back to the green, with the index currently up by 0.06% at just over 7,260 points.

But rather than trying to figure all of that out, let’s instead take a look at the shares that are currently at the top of the ASX 200’s share trading volume charts, according to investing.com. See if you can spot a theme today.

The 3 most traded ASX 200 shares by volume this Monday

Sayona Mining Ltd (ASX: SYA)

First up this Monday is the ASX 200 lithium stock Sayona Mining. This session has seen a sizeable 21.2 million Sayona shares swap hands as it currently stands. There hasn’t been any news out of Sayona itself today that might explain this huge volume.

But that hasn’t stopped this company from bucking the market’s general indecisiveness with a strong gain. At present, this ASX share has gained a pleasing 3.3% and is up to 22.2 cents per share. It’s this strong showing that probably explains the elevated volumes we are seeing.

Core Lithium Ltd (ASX: CXO)

Next up, we have another ASX 200 lithium stock to consider. Core Lithium has watched as a decent 21.95 million of its shares have made their way across the ASX boards so far today. Like Sayona, there hasn’t been any news to speak of out of Core Lithium itself.

But unlike Sayona, investors are sending this company down in value so far today. In Core Lithium’s case, we have seen a 0.21% drop in this company’s share price, putting it down to $1.1625 a share. With nothing else going on, it seems that this drop explains Core Lithium’s presence on this list today.

Lake Resources NL (ASX: LKE)

Finally, let’s check out yet another ASX 200 lithium stock in Lake Resources. A whopping 33.1 million Lake shares have traded on the ASX thus far today. It’s been a long time since we’ve seen any ASX updates out of Lake Resources (none in May so far). But that hasn’t stopped Lake shares from making a major move this Monday.

Investors have sent this stock packing, with the Lake share price having shed a nasty 5.85% so far this session, seeing the company down to 61.2 cents a share. Perhaps investors are pumping the brakes after the company put on more than 50% in value between 1 May and last Friday. Even so, it’s this sell-off that almost certainly explains why Lake Resources is topping our most traded shares list today.

The post Here are the 3 most heavily traded ASX 200 shares on Monday appeared first on The Motley Fool Australia.

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More reading

• 3 reasons I’m tipping the Telstra share price to keep rising in 2023
• Up 17% in 2023, are Woolworths shares still worth buying?
• Power portfolios: Millionaire investors shun ASX 200 lithium shares
• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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Are you looking for dividend stocks to buy? If you are, then the two listed below could be top options.

That’s because brokers have recently named these ASX 200 dividend stocks as buys. Here’s what they are saying about them:

Coles Group Ltd (ASX: COL)

Coles could be an ASX 200 dividend stock to buy.

That’s the view of analysts at Citi, which have responded positively to a recent tour of the supermarket giant’s new automated distribution centre. The broker commented:

Redbank Site Tour showcases step change in supply-chain capability Coles hosted a site tour of its new Automated Distribution Centre (ADC) located in Redbank, Queensland. Key takeaways: 1) Witron is the leader in automation with an excellent track record offshore; 2) we should expect better on-shelf availability, more flexible range management, and lower stock losses as the two ADCs go into operation; and 3) no changes to project costs were announced. Redbank is expected to be fully operational by end-2023. while Kemps Creek is expected to be fully operational in 3Q24. There should be a positive net EBIT impact in FY25, but the first full year of benefits is not expected to be achieved until FY26. Overall, the site tour reinforces our view that Coles is moving in the right direction and the ADCs have the potential to provide a cost advantage over competitors.

As for dividends, Citi is forecasting a 69 cents per share dividend in FY 2023 and 73 cents per share in FY 2024. Based on the current Coles share price of $18.34, this will mean yields of 3.8% and 4%, respectively.

Citi has a buy rating and $20.20 price target on its shares.

National Australia Bank Ltd (ASX: NAB)

Another ASX 200 dividend stock that has been named as a buy is banking giant NAB.

Goldman Sachs is positive on the bank and sees plenty of upside and big yields on offer with its shares. It explained why it is bullish, stating:

Our Buy rating on NAB is predicated on: i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes, and we believe NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years and its investments continue to yield benefits (A$400 mn expected in FY23E), which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s strong capital surplus position (A$3.1 bn of surplus capital above the top-end of its target CET1 range of 11.0-11.5%) allows flexibility for further buy-backs, v) NAB returns improvements vs. peers is not reflected in valuations (details within), and vi) our revised TP offers c. 21% TSR.

In respect to dividends, the broker is expecting fully franked dividends per share of $1.66 in both FY 2023 and FY 2024. Based on the current NAB share price of $26.47, this will mean yields of 6.3% for investors.

Goldman has a buy rating on its shares with a price target of $30.69.

The post 2 ASX 200 dividend stocks brokers rate as top buys appeared first on The Motley Fool Australia.

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More reading

• 5 ASX shares I’d buy for a US recession
• Top brokers name 3 ASX shares to buy next week
• How to invest $10,000 in ASX dividend shares in May
• Bank of Queensland is offering the highest savings interest rate of any ASX bank. What might this mean for shareholders?
• NAB share price up amid following the leader on cashbacks

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has fought hard and is now in positive territory on Monday afternoon. At the time of writing, the benchmark index is up slightly to 7,261.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why these ASX shares are falling:

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is down almost 4% to $23.58. This decline has been driven by the banking giant’s shares trading ex-dividend this morning for its upcoming dividend payment. Eligible shareholders can now look forward to receiving this fully franked 81 cents per share interim dividend in a touch over six weeks on 3 July.

Elders Ltd (ASX: ELD)

The Elders share price is down 13% to $7.24. This follows the release of a disappointing half-year result from the agribusiness company. Although Elders’ revenue was up 9% to $1.66 billion, its profit after tax slumped 47% to $48.8 million. This led to management cutting its interim dividend by 18% to 23 cents per share.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 9% to $5.09. This appears to have been triggered by the surprise resignation of the infection prevention company’s CFO, McGregor Grant, on Friday after 12 years in the role. In addition, it is worth noting that a number of ASX medical device shares are falling on Monday.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down 18% to $1.52. This follows news that the sports betting company has signed a deal to sell its US business to Fanatics Betting and Gaming for US$150 million (A$222 million). Investors appear disappointed with the price tag. Particularly given how this business was seen as the key driver of future growth.

The post Why ANZ, Elders, Nanosonics, and Pointsbet shares are falling today appeared first on The Motley Fool Australia.

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More reading

• Own Elders shares? Your dividend was just slashed by 18%
• Here’s why the Pointsbet share price is tumbling 17% on Monday
• Elders share price plummets as half-year profit dumps 46%
• Why is the ANZ share price sinking on Monday?
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nanosonics and PointsBet. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool Australia has recommended Elders and PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a modest decline. At the time of writing, the benchmark index is down a touch to 7,255.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why these ASX shares are rising today:

InvoCare Limited (ASX: IVC)

The InvoCare share price is up 12% to $12.43. This follows news that the funerals company has received an improved non-binding takeover offer from TPG Global. The private equity firm has made a $13.00 cash per share offer to acquire the company. This is up from its previous offer of $12.65, which was rejected by InvoCare.

Newcrest Mining Ltd (ASX: NCM)

The Newcrest share price is up 1.5% to $28.62. Investors have been buying this gold miner’s shares after it announced that it has entered into a scheme of arrangement with fellow gold miner Newmont. The scheme will see Newmont take over the miner for the equivalent of $29.27 per share. This implies an enterprise value of $28.8 billion.

Silver Lake Resources Ltd (ASX: SLR)

The Silver Lake Resources share price is up over 7% to $1.09. Interestingly, this rise comes after Silver Lake was outbid for the Leonora assets of St Barbara Ltd (ASX: SBM). It seems as though the market was not convinced that the acquisition of these assets would add sufficient value.

Silver Mines Ltd (ASX: SVL)

The Silver Mines share price is up 4.5% to 22.5 cents. This morning, this silver miner revealed bonanza grade silver from the Aegean Zone at the Bowdens Silver Deposit. Management notes that this new drill intercept is situated at the northern edge of the recently announced mineral resource estimate. As a result, it provides further extensional exploration targets.

The post Why InvoCare, Newcrest, Silver Lake, and Silver Mines shares are rising today appeared first on The Motley Fool Australia.

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More reading

• InvoCare shares rocket 11% today on sweetened $2.2 billion takeover offer
• Newcrest share price lifts as $28.8 billion Newmont takeover greenlighted
• What’s the 5-year forecast for commodity prices and ASX 200 mining shares?
• Newcrest share price slips as exclusivity period for $32b takeover extended
• What’s the gold price forecast for the remainder of 2023?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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Stock in tiny lithium hopeful Lithium Energy Ltd (ASX: LEL) took off earlier today before plunging into the red on news of a massive find at the company’s Solaroz Brine Project.

The project is located in Argentina, right next door to Allkem Ltd (ASX: AKE)’s flagship lithium facility, Olaroz.

Lithium Energy chair William Johnson dubbed the S&P/ASX 200 Index (ASX: XJO) giant’s recently-announced mega-merger plan:

A clear endorsement of our strategy to rapidly accelerate the development of Solaroz.

The Lithium Energy share price leapt to trade at $1.065 earlier today, marking an 11% jump on its previous closing price. It has since handed back all of that gain, and then some.

Right now, the stock is down 2.6%, trading at 93.5 cents.

Let’s take a closer look at what’s going right for the $58 million lithium hopeful on Monday.

Tiny ASX lithium stock pops then drops on “outstanding” find

A drilling program at Solaroz has been front of mind for fans of Lithium Energy shares lately. The company announced drilling had extended massive intersections of conductive brines at the project on Friday. Today, assays have confirmed the find.

The fourth and fifth drill holes completed at the project have identified conductive brines at depth with excellent lithium grades across massive intersections.

The fourth hole was found to host a total 473.5 metre intersection of lithium-rich brines, with concentrations of up to 508 milligrams of lithium per litre to date.

Meanwhile, the fifth hole saw its intersections of conductive brine extended to 489 metres, with an increase in lithium brine concentration of up to 495 milligrams per litre.

Johnson said drilling at the project “continues to deliver outstanding intersections of lithium rich brines”, continuing:

These drilling results continue to demonstrate the potential for Solaroz to support a world class resource of lithium and with three rigs soon to be operating concurrently, we are excited to be rapidly advancing towards defining our maiden JORC resource at Solaroz.

Lithium Energy share price snapshot

This year has been good to the ASX lithium stock so far.

The Lithium Energy share price has gained 26% since the start of 2023. Though, it’s 19% lower than it was this time last year.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) has gained 4% year to date and 1% over the last 12 months.

The post Tiny lithium stock uncovers ‘outstanding’ find next-door to ASX 200 fave appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Avita Medical share price is tumbling 20% today
• Own NextDC shares? Here’s what’s happening with the ASX 200 tech share’s $618 million cap raise
• Leading brokers name 3 ASX shares to buy today
• Own Elders shares? Your dividend was just slashed by 18%
• Here’s why the Pointsbet share price is tumbling 17% on Monday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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It’s been a fairly lacklustre start to the trading week for most ASX shares so far this Monday. At the time of writing, the All Ordinaries Index (ASX: XAO) has fallen by 0.21%. But let’s talk about the plunging Avita Medical Inc. (ASX: AVH) share price.

Avita Medical shares are in freefall today. This ASX healthcare share has dropped by a precipitous 19.38% so far this Monday to $3.66 a share. That comes after Avita shares closed at $4.54 each last Friday.

It was even worse for Avita this morning too, with the shares hitting a low of $3.53 soon after market open. That was a drop of 22.25% at the time.

So what on earth is going on with Avita shares today that has this company losing so much value?

Why has the Avita Medical share price lost 20% today?

Well, Avita is a bit of a unique case on the ASX. The company is actually a dual-listed share, with its other listing being on the United States NASDAQ exchange – Avita Medical Inc. (NASDAQ: RCEL).

Last Friday, Avita released some financial results and guidance to investors, covering the three months to 31 March 2023. These results revealed a 40% increase in revenue for the quarter to $10.6 million, as well as a rise in gross profit margins to 84%.

The company also announced a major change in its leadership team. Chief commercial officer Erin Liberto has resigned from the company, while Terry Bromley and Debbie Gardener have been promoted to senior vice president of global sales, and senior vice president of global marketing and strategy respectively.

ASX investors reacted negatively to this news on Friday’s session, sending Avita shares down by 5.42%.

But Avita’s American investors were far more savage on Friday night (our time). Over on the NASDAQ, the Avita share price tanked by a nasty 22.94%.

It seems Avita’s ASX investors might be taking a lead from their American counterparts today in the wake of Friday’s far more savage reaction. This could explain the doubling down of selling pressure that we seem to be witnessing on the ASX today.

But shareholders arguably don’t have too much to complain about. Even after today’s savage selling, the Avita share price on the ASX is still up a whopping 90% in 2023 so far:

The post Here’s why the Avita Medical share price is tumbling 20% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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NextDc Ltd (ASX: NXT) shares have dropped back into the red in early afternoon trade today.

The S&P/ASX 200 Index (ASX: XJO) tech share is down 0.1%, having earlier posted gains of 0.3%.

Shares are currently changing hands for $11.77 apiece, up 31% in 2023. That gives the company a current market cap of $5.4 billion.

NextDC shares entered a trading halt on Thursday after management announced a $618 million capital raising.

Those funds will be used to develop two new data centres on recently acquired commercial property sites in Kuala Lumpur, Malaysia and Auckland, New Zealand.

Here’s how that cap raise is progressing.

What’s happening with the $618 million capital raising?

NextDC shares resumed trading today after the company updated the market on the $618 million fully underwritten 1 for 8 pro-rata accelerated non-renounceable entitlement offer. Shares are being offered for a discounted $10.80 apiece.

Management reported they had successfully raised about $416 million under the institutional component of the offer.

The company reported strong support for its institutional offer, with a take-up rate of some 99%. The remaining 1% was allocated to shareholders who bid for more shares than their existing entitlements.

The new NextDC shares issued under the institutional offer are expected to begin trading on Wednesday, 24 May.

The retail component of the offer opens this Thursday, 18 May and runs through to market close on Wednesday, 31 May. Eligible retail shareholders can participate at the same offer price of $10.80 per new NextDC share.

“We have received an exceptional level of support from our existing institutional shareholders in this entitlement offer,” NextDC CEO Craig Scroggie said.

Scroggie continued:

Having dedicated more than a decade building NextDC’s robust digital infrastructure platform across Australia, we are thrilled to undertake these new regional investments to kickstart our international operations.

Regional expansion allows NextDC to strategically leverage our invaluable customer relationships, our development expertise, and our operating credentials.

How have NextDC shares tracked longer-term?

As mentioned up top, NextDC shares have gained 31% so far in 2023.

Longer-term, the ASX 200 tech stock is up 55% in five years.

The post Own NextDC shares? Here’s what’s happening with the ASX 200 tech share’s $618 million cap raise appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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