The RAIZ Invest Ltd (ASX: RZI) share price has slumped 5% this morning after a capital raising update from the Aussie fintech.
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Why is the Raiz Invest share price under pressure?
Raiz this morning provided an update on its institutional share placement. The Aussie fintech received firm commitments to raise $10.2 million via an oversubscribed placement backed by new and existing shareholders.
The Raiz Invest share price has slumped lower on the news after raising the cash at $1.50 per share. That represented a 9.4% discount to the final closing price of $1.655 on 27 April 2021.
Following the settlement of the placement, Raiz will offer eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP). Those funds will also be raised at $1.50 per share.
Raiz intends to use the funds to accelerate customer growth, develop new products and services, expand into new geographies and integrate the acquisition of Superestate. The Aussie fintech yesterday announced that acquisition for $9.5 million in an all-scrip transaction.
Superestate is a "niche, integrated superannuation and Australian residential property investment platform". Raiz Invest Managing Director/Group CEO George Lucas said the acquisition marks an "important milestone for the group".
"The acquisition provides tangible benefits to the customers of both financial services groups", he added. Integrating Superestate allows Raiz to add residential property investment to its platform options.
The Raiz Invest share price is slumping lower this morning following the capital raising update. It comes shortly after the group's quarterly result highlighted by adding nearly 26,000 more active customers.
Today's placement will result in the placement of 6,800,000 new, fully paid ordinary shares at $1.50 per share. The new shares will rank equally alongside existing Raiz shares with a further 5,300,000 shares raised to acquire Superestate.
Foolish takeaway
The Raiz Invest share price is under pressure early on Friday morning. Investors have pushed the company's shares lower after the company raised $10.2 million at $1.50 per share.
