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Afterpay share price pushes higher after raising $317.2 million

The Afterpay Touch Group Ltd (ASX: APT) share price has returned from its trading halt this morning following the successful completion of its capital raising.

At the time of writing the payments company’s shares are up over 3% to $24.95.

What happened with the capital raising?

According to the release, Afterpay Touch successfully raised $317.2 million via its fully underwritten institutional placement.

The placement was strongly supported by both existing and new shareholders, leading to the funds being raised at $23.00 per share. This was at the top end of the placement price range and a discount of just 4.8% to the last close price.

Afterpay Touch’s independent director, Elana Rubin, revealed that the company was pleased with the capital raising.

She said: “We are pleased by the strong investor support shown in the capital raising for the Afterpay business and our global growth strategy as outlined in our previously announced mid-term plan. The Placement was oversubscribed, and we are also pleased to welcome several new high-quality institutions onto our register.”

Secondary sell-down.

The company also advised that the sell down of shares by Anthony Eisen, Nicholas Molnar, and David Hancock was successful. Tiger Management and Woodson Capital snapped up the shares at the placement price of $23.00 per share.

All three executives have confirmed that they intend to remain as supportive and committed investors in the company, and will not sell any further shares until at least 120 days from the announcement of the placement.

Share purchase plan.

Afterpay Touch will now push ahead with its share purchase plan to raise a further $30 million.

Eligible shareholders will have the opportunity to subscribe for up to $15,000 worth of new shares at the lower of $23.00 and the 5-day VWAP of Afterpay Touch shares up to the SPP closing date.

The share purchase plan will not be underwritten and the company may decide to scale back applications at its absolute discretion.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Appen Ltd. 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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