Bigtincan (ASX:BTH) share price rockets 20% with capital raising update

The company’s shares are on the move today…

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share price soaring

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The Bigtincan Holdings Ltd (ASX: BTH) share price is soaring after the company returned to trading today following its completed Placement and Institutional Entitlement Offer.

At the time of writing, the software company’s shares are fetching $1.44, up a sizeable 20.5%.

Bigtincan share price resumes

It’s been a strong day for the Bigtincan share price, with investors buying up amid the company’s successful equity raise.

In a statement to the ASX, Bigtincan advised it has raised gross proceeds of approximately $79.4 million. This consists of a placement to United Stated-based investment firm SQN investors and an accelerated institutional component.

The placement saw 20 million shares issued to SQN investors at a price of $1.05 per share, raising $21 million. This was completed Tuesday 24 August.

On the other hand, the institutional component is set to raise roughly $58.4 million at the same price. This comprises a 1 for 4 underwritten accelerated pro-rata non-renounceable entitlement offer. In turn, the company will issue around 55.6 million new ordinary shares.

A retail entitlement component is also expected to be raised, allowing everyday shareholders to take part in the offer. It’s projected approximately a further $56 million (before costs) will be added to Bigtincan’s equity raise.

In total, all 3 components will bring a value of $135.4 million should the retail offer move forward.

The proceeds will go towards funding the acquisition of United States-based Brainshark, Inc. for US$86 million (A$118.7 million). Bigtincan regards Brainshark as a strong fit for its growing portfolio.

About the Bigtincan share price

Over the past 12 months, Bigtincan shares have moved in circles with sharp share price movements. The company’s share price is up 65% since this time last year, with 31% gains year to date.

Bigtincan presides a market capitalisation of about $631 million, with more than 435 million shares on its books.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. 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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