As I’ve mentioned here before, I like to keep an eye on substantial shareholder notices.

This is because it gives you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

IDP Education Ltd (ASX: IEL)

A notice of initial substantial holder reveals that Capital Group Companies has been buying the shares of this provider of international student placement services and English language testing services. Capital Group is an American financial services company. It is one of the world’s oldest and largest investment management companies with over US$2 trillion in assets under management.

According to the notice, Capital Group has been building a position in the company over the last six months and was buying shares as recently as Wednesday. It now owns 14,201,994 IDP Education shares, which equates to a 5.1% stake in the company. With its share price down 33% from its 52-week high, Capital Group appears to see a lot of value here.

TechnologyOne Ltd (ASX: TNE)

Another notice of initial substantial holder reveals that VicSuper has been taking advantage of a recent pullback in this enterprise software company’s shares to top up its position. VicSuper, which was established in 1994, is one of Australia’s leading profit-to-member super funds.

According to the notice, VicSuper now owns 17,953,423 TechnologyOne shares. This represents a 5.63% stake in the company. The TechnologyOne share price is down almost 12% since the release of its half year update last month. Investors were a touch underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Nevertheless, judging by its purchases, this fund manager appears confident in TechnologyOne’s growth prospects and has seen this pullback as a buying opportunity. 

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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 Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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The Wide Open Agriculture Ltd (ASX: WOA) share price has charged out of a trading halt today, rallying as much as 30% on the back of a completed capital raising.

Wide Open Agriculture is in the business of regenerative food and farming. Through its farmland portfolio and Dirty Clean Food brand, the company grows, markets and distributes food products.

More specifically, Dirty Clean Food offers regeneratively grown animal and plant-based products, such as lamb, beef, milk, and bread, to consumers located primarily in Australia and South-East Asia.

Wide Open Agriculture is dual-listed on the Frankfurt Stock Exchange and has been publicly listed in Australia since July 2018.

Details of the capital raising

Wide Open Agriculture shares resumed trading on the ASX this morning after being placed in a trading halt at the beginning of the week.

The resumption of trading came as the company announced the successful completion of a $3 million institutional placement.

The placement will see Wide Open Agriculture issue around 11 million new ordinary shares to institutional and sophisticated investors at a price of 27 cents apiece. This represents an 18.2% discount to the company’s last closing price of 33 cents.

Wide Open Agriculture stated that the placement was strongly supported by existing shareholders. It also introduced a number of new, high net-worth investors to its share register.

The company believes the strong demand for the placement provides validation of its growth strategy to increase revenue and launch additional products for its growing customer base.

Following this boost to its cash reserves, Wide Open Agriculture will now work towards expanding and diversifying its online product offering, launching oat milk and plant-based protein products for Australian and global markets, and accelerating sales of regenerative meat.

Commenting on the placement, managing director Ben Cole said:

“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of WOA’s execution to date, but also demonstrates the belief that the Company is positioned to grow alongside the rapidly expanding base of conscious food consumers and regenerative farmers.”

“Our highly capable, experienced team is now ready to grow the Company and maximise shareholder return and scale our positive impact,” he added.

At the time of writing, Wide Open Resources shares are changing hands at 40 cents apiece, taking the company’s current market capitalisation to just $28 million. 

More reading

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• CSL share price lower despite COVID-19 vaccine news

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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