The Zip Co Ltd (ASX: Z1P) share price is heading south today, nearing its 52-week low of $1.40.
This comes after the buy now, pay later (BNPL) provider announced the results of its recent Share Purchase Plan (SPP).
At the time of writing, Zip shares are swapping hands for $1.47, down 4.85%.
What were the results of Zip’s SPP?
In a statement to the ASX, Zip advised it has completed its SPP.
In total, the company raised around $23.98 million – a significant shortfall of the $50 million offered to retail investors.
It appears that concerns the Zip share price could fall further led eligible shareholders to watch from the sidelines.
And indeed, they were right.
The final issue price under the SPP is $1.48 per share.
However, the company’s shares fell to an intraday low of $1.46 today. This means you could have picked them up cheaper than the SPP.
For those who did participate under the placement, the allotment of the new shares is scheduled for this Friday. Normal trading of the new shares will commence on Monday 11 April.
Recently, the company successfully completed a $148.7 million institutional placement from a number of institutional, sophisticated and professional investors. The price listed under the placement was $1.90.
Zip previously noted that the proceeds of its capital raising efforts will go towards strengthening its balance sheet.
In addition, it is also looking to shore up funds to execute on the potential synergies from the upcoming transaction. This relates to the $491 million all-scrip acquisition of Sezzle Inc (ASX: SZL).
Zip share price summary
The Zip share price is down more than 85% since its 52-week high of $10.61 reached in April 2021.
The company’s share price has continued a downward trajectory, wiping off significant value on investor portfolios.
On valuation grounds, Zip has a market capitalisation of around $986.85 million, with approximately 669.05 million shares outstanding.
The post Zip shares sink on the release of its share purchase plan results appeared first on The Motley Fool Australia.
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More reading
- ASX 200 (ASX:XJO) midday update: Block and Zip sink, Paladin Energy raises $200m
- Why did the Zip share price get smashed in March?
- These are the 10 most shorted ASX shares
- These were the worst performing ASX 200 shares during the first quarter
- Zip share price backtracks ahead of share purchase plan closure
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 and has recommended ZIPCOLTD FPO. 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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