The EROAD Ltd (ASX: ERD) share price is ending its consecutive run of green days today following the opening of its Share Purchase Plan (SPP).
Established in 2000, EROAD is a technology, tolling and services provider based in Auckland, New Zealand. The company designs and manufactures in-vehicle hardware providing road charging, compliance and commercial services.
At market close, the transport technology company’s shares finished 2.21% down, to $6.20.
EROAD begins Share Purchase Plan offer
Investors are weighing down EROAD shares after the company’s latest announcement to the ASX.
According to its release, EROAD commenced a NZ$16.1 million (A$15.19 million) non-underwritten SPP.
The SPP follows the company’s NZ$64.4 million (A$60.77 million) placement to partly fund the acquisition of telematics provider Coretex. This consists of an upfront fee of NZ$157.7 million (A$148.71 million) and NZ$30.6 million (A$28.85 million) in contingent consideration payable in FY 2023.
EROAD management believes the takeover will be transformational, positioning it as a bigger player in the global telematics market.
The shares of the SPP will be issued at the lower of the price paid by investors in EROAD’s recent placement. This is NZ$5.58 (A$5.26) per new ordinary share.
The company stated that up to $30,000 worth of shares can be applied for. However, it may accept oversubscriptions or scale back applications at its discretion based on the result of the SPP.
Settlement of the shares from the SPP is expected to occur on 13 August 2021.
About the EROAD share price
Over the last 12 months, EROAD shares pushed higher to reach an all-time high of $6.51 yesterday. This brings the share price gain for the period to around 56% and almost 33% higher for 2021.
At today’s price, EROAD commands a market capitalisation of roughly $511 million, with approximately 81 million shares on its registry.
The post EROAD (ASX:ERD) share price slumps on opening of SPP appeared first on The Motley Fool Australia.
Should you invest $1,000 in EROAD right now?
Before you consider EROAD, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and EROAD wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
More reading
- EROAD (ASX:ERD) share price drives higher following transformational acquisition
- Why is the Eroad (ASX:ERD) share price halted today?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EROAD Limited. The Motley Fool Australia owns shares of and has recommended EROAD Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3iqFEOO
Leave a Reply