Why the SG Fleet (ASX:SGF) share price surged 10% today

The SG Fleet Group Ltd (ASX: SGF) share price has rocketed higher in a strong return to the ASX boards after an acquisition announcement.

| More on:
ASX bank profit upgrade Red rocket and arrow boosting up a share price chart

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

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.

More on Share Gainers

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

3 ASX All Ords shares up 50%+ in March

These ASX shares have been on fire this month. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Mesoblast, Patriot Battery Metals, Sigma, and Zip shares are pushing higher

These shares are having a good session on hump day. But why?

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Consumer Staples & Discretionary Shares

If you'd put $20,000 in this ASX retail stock at the start of 2023, you'd have $134,000 now

This online retailer has executed a remarkable turnaround for its investors.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to earth for ASX shares this Tuesday.

Read more »