The Pushpay Holdings Ltd (ASX: PPH) share price has returned from its trading halt and is tumbling lower.
At the time of writing, the donor management and engagement platform provider’s shares are down 3.5% to $1.72.
Why was the Pushpay share price in a trading halt?
On Tuesday, Pushpay requested a trading halt whilst it launched a bookbuild process to facilitate the sale of a significant combined stake in the company by two existing shareholders.
Former CEO Chris Heaslip was selling 41.67 million shares and Executive Director Chris Fowler was selling 13.01 million shares.
These sales would reduce Mr Heaslip’s stake from 4% to 0.20% (which will be held by the Mission 316 Foundation) and Mr Fowler’s stake from 2.4% to 1.2%.
According to yesterday’s update, the sell down was fully underwritten at a floor price of NZ$1.75 per share. This represented a 7.4% discount to the last closing price of NZ$1.89 on 14 December.
What happened with the bookbuild?
This morning Pushpay revealed that the bookbuild was completed successfully.
According to the release, the 54.68 million shares were ultimately sold for NZ$1.79 per share, which was higher than the floor price and a discount of 5.3% to its last close price.
Pushpay advised that the book was oversubscribed and well supported, attracting bids from 22 institutional investors across New Zealand, Australia, Canada and the US. There was also strong participation from retail investors.
Pushpay’s CEO, Bruce Gordon, commented: “We are pleased to see the continued strong support for Pushpay in the market. The transaction attracted significant interest from both our existing and a number of new high-quality institutional investors.”
“The successful completion of this transaction further demonstrates that our value proposition and strategy to become the preferred provider of mission critical software to the US faith sector continues to resonate with investors,” he concluded.
FY 2021 guidance.
In case you missed it, yesterday the company also confirmed that it is on track to achieve its EBITDAF guidance of between US$54 million and US$58 million for the 12 months ending 31 March.
This represents a 116% to 132% increase, respectively, on FY 2020’s operating earnings of US$25.1 million.
However, management has warned that there are uncertainties and impacts surrounding COVID-19 and the broader US economic environment that remain.
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting…
Because ‘Doc’ Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget ‘buy now pay later’, this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
See how you can find out the name of this stock
Returns as of 6th October 2020
More reading
- 3 exciting ASX tech shares to buy in 2021
- ASX 200 falls on Tuesday
- Top ASX shares to buy in 2021
- Why the Pushpay (ASX:PPH) share price is in a trading halt
- These are 10 of the best performing ASX tech shares of 2020 so far
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the Pushpay (ASX:PPH) share price is tumbling lower today appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3noNOZg
Leave a Reply