The Carsales.com Ltd (ASX: CAR) share price has been put in the freezer as the company prepares to announce news of a capital raise.
The Carsales share price is halted at its previous closing price of $20.76.
Let’s look at what’s going on with the Australian online automotive, motorcycle, and marine classifieds business’ stock on Monday.
Why is the Carsales share price in the freezer?
Carsales’ stock has been halted today as the company prepares to announce news of a pro-rata accelerated non-renounceable entitlement offer.
The stock is expected to return to trade when the company announces the completion of the offer’s institutional component.
If such news doesn’t break in the coming days, Carsales’ shares are expected to resume trading as normal on Wednesday morning.
The last time the market heard price-sensitive news from the company was way back in February. Then, it released its earnings for the first half of financial year 2022.
The company held around $91 million in cash and equivalents at the end of December. It also had $643 million in borrowings.
The last time the company underwent a capital raise was in mid-2021.
Then, it raised around $600 million to partially fund the acquisition of a 49% interest in Trader Interactive. The offer â which saw new shares handed out for $17 apiece â received strong support. It boasted a take-up of around 83% by eligible institutional shareholders.
The Carsales share price has slipped nearly 19% since the start of 2022. Though, it’s still 6% higher than it was this time last year.
The post Why is the Carsales share price frozen on Monday? appeared first on The Motley Fool Australia.
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More reading
- 2 ASX shares to buy to win the rest of 2022: expert
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- How to turn $20,000 into $180,000 in 10 years with ASX shares
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 recommended carsales.com Limited. 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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