The Laybuy Holdings Ltd (ASX: LBY) share price will be one to watch when trading opens up this morning. This comes after the buy now, pay later (BNPL) provider announced an update to its recent capital raising efforts.
At close of trade on Monday, Laybuy shares finished the day at 51 cents – up 0.99%. The All Ordinaries Index (ASX: XAO) closed the trading day at 7,485 points – down 1.8%.
Let's take a closer look at what the company released in yesterday's late market news.
What did Laybuy announce?
Laybuy shares could be on the move today following the announcement of a successfully completed share purchase plan (SPP).
In a statement to the ASX, Laybuy advised it has raised $5 million to accelerate its growth strategy in the United Kingdom.
The non-underwritten SPP received overwhelming support from eligible shareholders, totalling $14.4 million in valid applications. This almost tripled the size of the tabled offer put towards retail investors, with over 1,000 shareholders participating in the SPP.
As a result, Laybuy will scale back the applications based on the shareholding balances of applicants at the record date. All eligible applicants, however, will be allocated a minimum quantity of $1,000 in Laybuy shares. The average participation amount for each application was $14,025.
In total, almost 10 million new ordinary shares will be issued under the SPP after rounding and scale back is applied. The offer price was listed at 50 cents apiece.
The SPP shares are expected to be issued on 25 June, and be available for trading from 28 June 2021.
Laybuy's capital raising efforts, including the $35 million two-tranche placement completed last week, provide additional firepower on its balance sheet.
The company's managing director, Gary Rohloff, commented:
We are very pleased with the demonstration of support by our shareholders shown in this SPP. The capital raising will allow us to focus on our strategic priorities, including investment in our people, our platform and accelerated growth in the UK.
Laybuy share price summary
The Laybuy share price is down more than 75% since its 52-week high of $2.30 reached in September 2020. The company's shares are also down more than 60% year to date.
On valuation grounds, Laybuy has a market capitalisation of around $125 million, with approximately 244 million shares outstanding.
