Superloop (ASX:SLC) share price slips following successful retail offer

Shares in the telecommunications infrastructure company are wobbly after today’s announcement.

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ASX share price slide represented by investor slipping on banana skin

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Superloop Ltd (ASX: SLC) shares are edging lower in midday trading today after the company announced it had successfully completed its planned retail entitlement offer.

At the time of writing, the Superloop share price is trading at 93.75 cents, 0.27% in the red from yesterday’s close.

Let’s dive into what happened this morning.

Successful retail entitlement offer

Back on 8 June, Superloop announced its intention to complete a fully underwritten $100 million equity capital raise.

The raise was to be completed via an entitlement offer of new Superloop shares totalling $51 million, plus an institutional placement to institutional investors, to raise $49 million.

The entitlement offer is comprised of an institutional component and a retail component, known as the ‘retail entitlement offer’.

Both the institutional placement and institutional component of the entitlement offer settled successfully on 17 June 2021, with a total of $78.8 million raised, according to the company.

Today’s announcement outlines that the retail entitlement offer settled on 29 June, raising $21.2 million. Approximately 22.8 million new Superloop shares will be issued under this offer on 6 July, the company stated.

The new shares issued under the offer are expected to commence trading on the ASX from 7 July.

Superloop share price snapshot

The Superloop share price has largely walked southwards since 1 January and is currently around 10% in the red since then.

Superloop shares are also down by around 7% over the previous month but have traded up by around 1% over the previous 5 sessions.

Over the last 12 months, Superloop shares have posted a loss of almost 13%, which is well below the S&P/ASX 200 Index (ASX: XJO)’s return of around 20% over this time.

With the current Superloop share price of 93.75 cents, the company has a market capitalisation of around $423.5 million. It is currently trading off its 52-week high of $1.25.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended SUPERLOOP FPO. 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.

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