Shares in Superloop Ltd (ASX: SLC) opened lower today before jumping higher in mid-morning trade and then quickly falling again. At the time of writing, the Superloop share price is sitting at $1.05, the same as at yesterday’s close.
Today’s share price movements follow news the company is to finalise shareholder eligibility to participate in the final step of its capital raise.
Yesterday, the telecommunication and infrastructure company announced it had completed its placement and institutional entitlement offer, which raised $79 million. Today’s news relates to Superloop’s upcoming retail entitlement offer.
Let’s take a closer look at the company’s latest announcement.
Retail entitlement offer
The retail entitlement offer is the last portion of Superloop’s $100 million capital raise.
It will be open only to those who hold shares of Superloop as of 7pm AEST today.
Eligible shareholders will be able to buy 1 new share in Superloop for every 6.67 shares they hold. They will also be able to take part in the top-up facility by applying for up to 50% more shares than they are initially eligible for.
Each new share will cost 93 cents – a 10.6% discount on the Superloop share price as of market close on 4 June.
The retail entitlement offer is expected to raise around $21 million. The final offer will close on 29 June.
Superloop is raising capital to acquire Australia’s largest independent internet service provider, Exetel. According to Superloop, the acquisition will boost its customer base by 110,000 and deliver $5 million in cost savings annually.
After the acquisition, Superloop expects its 2021 financial year earnings before interest, tax, depreciation, and amortisation (EBITDA) to be 89% higher than the 2020 financial year.
Superloop share price snapshot
2021 has been a nail-biting year for the Superloop share price, which is currently 0.94% less than it was at the start of the year.
It has also fallen by 6.67% since this time last year.
The telecommunications company has a market capitalisation of around $384 million, with approximately 370 million shares outstanding.