The IOUpay Ltd (ASX: IOU) share price surged today following the shares return to the market after a trading halt last week.
The IOUpay share price closed the day's trade at 22 cents a share, up 10.26%, after opening at 21 cents. IOUpay shares traded at 20 cents a share last Wednesday (4 November) before they were placed in a trading halt by the company.
A successful capital raise
The reason for this halt was a capital raise, the details of which we didn't find out until today. That's because, unlike many capital raises ASX investors would be used to, this particular one was open to "sophisticated and institutional investors" only and conducted behind closed doors.
The company told investors this morning that the raise was successful, and has resulted in the company raising $10,055,300 via the issuance of approximately 62.85 million shares at a price of 16 cents each. This was made up of 2 tranches of different prices and volumes.
The IOUpay chair Aaron Lee had this to say on the placement:
The Company is delighted to see the market respond so strongly to our plans to accelerate our market position as a leading operator in the digital payments sector in South East Asia. This capital raising represents another important milestone in our roadmap to expand our existing and new product offerings. We welcome all new shareholders and thank our existing shareholders for their continued support.
IOUpay told investors that the capital raised from this program will go towards a number of areas. These include "salaries, professional services, administration expenses, product development, digital payment inventory and marketing development."
If today's share price movement is anything to go by, IOUpay investors seem to be enthusiastically on board with the company's plans.
Who is IOUpay?
IOUpay is one of the newest ASX fintech shares, having only debuted on the ASX in September. It caused quite an impression when it surged 44% on IPO day.
IOUpay provides digital commerce software solutions and services. The company helps institutional clients expand their digital platforms, products and offerings to any mobile device. According to the company, it aims to be "one of the leading digital transaction processors in the booming cashless economies of Southeast Asia."
The IOUpay share price is currently sitting more than 46% higher than when it IPOed, with a current market capitalisation of just over $79 million.
