Why the SG Fleet (ASX:SGF) share price is one to watch next week

The SG Fleet Group Ltd (ASX: SGF) share price will be on watch when it returns to trade on Tuesday after a successful capital raise.

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Giant magnet attracting banknotes to symbolise a capital raising

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The SG Fleet Group Ltd (ASX: SGF) share price is one to watch when the ASX re-opens on Tuesday. Shares in the Aussie fleet management and leasing solutions group are set to return to trade after a successful equity raise this week.

Why is the SG Fleet share price on watch next week?

SG Fleet shares were voluntarily suspended on Wednesday 24 March 2021. That suspension is expected to be lifted on Tuesday when trading resumes after the Easter break.

SG Fleet this morning reported the successful completion of its institutional equity raising. The 1 for 7.44 pro-rata accelerated non-renounceable entitlement offer raised $72 million for the company.

Those proceeds will be used to partially fund the acquisition of LeasePlan ANZ for $387 million. The institutional offer was raised at $2.45 per New Share — a 4.5% discount to the $2.56 theoretical ex-rights price (TERP). That’s also a 5.0% discount to the last closing price of $2.58 on Tuesday 23 March 2021.

The institutional offer raised approximately $72 million with a 99.98% take-up rate from eligible shareholders. A further $14 million is expected to be raised from the retail component of the equity raising.

The Aussie company’s shares will be worth watching when it returns to the boards in Tuesday’s trade. Following the scrip consideration as part of the LeasePlan ANZ transaction, SG Fleet’s majority shareholder, Super Group Limited, will control 52.3% of issued share capital, down from 60.1% at present.

Shares in the Aussie leasing group had climbed 7.5% in 2021 prior to the acquisition update last Wednesday. In the last 12 months, the SG Fleet share price has climbed 106.4% to outperform the S&P/ASX 300 Index (ASX: XKO) by nearly 70%.

Foolish takeaway

All eyes will be on the SG Fleet share price when the Aussie fleet management group returns to the ASX after Easter. Tuesday will represent the first day of trade since the major LeasePlan ANZ acquisition announced last Wednesday.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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