The SG Fleet Group Ltd (ASX: SGF) share price has rocketed back to ASX trading with a 10% share price surge. Shares in the Aussie fleet management group jumped 10.1% in early trade after nearly 2 weeks in a trading halt.
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Why is the SG Fleet share price rocketing?
It's been a big couple of weeks for the SG Fleet shareholders. Since entering a trading halt on Wednesday 24 March, the company has announced a $387 million acquisition and $86 million capital raising.
SG Fleet last week raised $72 million from its institutional entitlement offer. That offer was at $2.45 per New Share – a 5.0% discount to its last closing price of $2.58 on 23 March 2021.
That institutional offer achieved a 99.98% take-up rate from eligible shareholders. A further $14 million is expected to be raised from retail shareholders.
Those proceeds will go towards partially funding the group's planned acquisition of LeasePlan ANZ. The scrip-based consideration will cost the equivalent of $387 million for the fleet management, car leasing and salary packaging competitor.
The SG Fleet share price has this morning returned to trading in a big way. Shares in the Aussie company have rocketed higher at the time of writing to a new 52-week high of $2.85 per share.
The S&P/ASX 200 Index (ASX: XJO) has also enjoyed a strong start to the morning. The benchmark Aussie index was up nearly 1% at midday and approaching 6,900 points.
Foolish takeaway
The SG Fleet share price has rocketed higher in a strong start to the shortened trading week. Shares in the fleet management group have climbed after an acquisition announcement and capital raising, whilst the broader market has also lifted today.
