The WiseTech Global Ltd (ASX: WTC) share price has returned from its trading halt this morning.
In early trade the logistics platform provider's shares have fallen 7% to $21.55.
Why were WiseTech Global's shares in a trading halt?
WiseTech Global's shares were placed in a trading halt on Tuesday whilst it undertook a fully underwritten placement of shares.
This morning the company advised that it successfully completed the placement, raising a massive $300 million at $20.90 per share. This placement is 20% higher than the $250 million that it was initially looking to raise.
Management made the decision to increase the size of the placement to partially accommodate the significant demand from local and global institutional investors.
WiseTech Global's founder and CEO, Richard White, appeared to be delighted with the market's reception to its placement.
He said "We are energised by the incredibly strong support shown by both existing, and new high-quality, institutional investors for WiseTech. This capital will add further strength to our balance sheet, our vision of digitally empowering and enabling the global logistics industry and will increase the capacity to accelerate our long-term organic growth, through relentless innovation and the acquisition of strategically valuable assets in important new geographies and key adjacencies."
The settlement of the placement is expected to occur on Friday March 22, with the allotment of shares expected to occur on Monday March 25.
Retail investors will now have the opportunity to participate in a non-underwritten share purchase plan to raise up to $30 million. The issue price under the plan will be the lower of the placement price or a 2% discount to the 5-day volume weighted average price at its closing date of April 11.
Should you invest?
I think the placement was a smart move by management and puts the company in a very strong position to maintain its impressive growth trajectory.
In light of this, I continue to believe that it would be a great buy and hold investment option in the tech sector along with Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX). This could make it worth buying shares on today's share price weakness.
