The SG Fleet Group Ltd (ASX: SGF) share price has rocketed back to ASX trading with a 10 per cent share price surge. Shares in the Aussie fleet management group jumped 10.1% in early trade after nearly 2 weeks in a trading halt.
Why is the SG Fleet share price rocketing?
It’s been a big couple of weeks for the SG Fleet shareholders. Since entering a trading halt on Wednesday 24 March, the company has announced a $387 million acquisition and $86 million capital raising.
SG Fleet last week raised $72 million from its institutional entitlement offer. That offer was at $2.45 per New Share – a 5.0% discount to its last closing price of $2.58 on 23 March 2021.
That institutional offer achieved a 99.98% take-up rate from eligible shareholders. A further $14 million is expected to be raised from retail shareholders.
Those proceeds will go towards partially funding the group’s planned acquisition of LeasePlan ANZ. The scrip-based consideration will cost the equivalent of $387 million for the fleet management, car leasing and salary packaging competitor.
The SG Fleet share price has this morning returned to trading in a big way. Shares in the Aussie company have rocketed higher at the time of writing to a new 52-week high of $2.85 per share.
Investors have been waiting and watching for a chance to buy in following recent changes. That has seen shares in the fleet group surge higher today before paring back some of those gains in the late morning and early afternoon.
The S&P/ASX 200 Index (ASX: XJO) has also enjoyed a strong start to the morning. The benchmark Aussie index was up nearly 1 per cent at midday and approaching 6,900 points.
Foolish takeaway
The SG Fleet share price has rocketed higher in a strong start to the shortened trading week. Shares in the fleet management group have climbed after an acquisition announcement and capital raising, whilst the broader market has also lifted today.
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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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