One of the worst performers on the ASX 200 on Wednesday has been the WiseTech Global Ltd (ASX: WTC) share price.
In early afternoon trade the logistics solutions company's shares are down 6% to $21.84.
Why is the WiseTech Global share price sinking lower?
With no news out of the company or broker notes that I'm aware of, today's decline is a bit of a mystery.
However, earlier this week WiseTech Global announced the successful completion of its share purchase plan (SPP).
The SPP raised approximately $35.9 million, with approximately 1.7 million new fully paid ordinary shares to be issued to successful SPP applicants at a discount of $20.90 per share.
In order to accommodate the strong support from shareholders, management decided to increase the size of the SPP to $35.9 million from the expected $30 million. This meant that all valid subscriptions from eligible shareholders were to be accepted in full, with no scale back.
Management explained that the money would be used to fund the continued disciplined execution of its growth strategy, increasing its capacity to accelerate its long-term organic growth "through relentless innovation and the acquisition of strategically valuable assets in important new geographies and key adjacencies."
Why is this causing its share price to sink lower?
Although eligible shareholders aren't expected to be allotted their new shares until tomorrow, I suspect a few investors have jumped the gun today and sold off some of their existing shares ahead of the receipt of the new ones in order to profit from the SPP discount.
This certainly would have been tempting for many shareholders as its shares closed at $23.25 yesterday, which was 11.2% higher than the SPP price.
Should you buy the dip?
Due to its extremely positive long-term growth outlook, once the dust settles on this capital raising I think it would be worth considering an investment in the fast-growing tech company along with Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).
