The Aussie Broadband Ltd (ASX: ABB) share price won't be going anywhere on Tuesday after the company requested a trading halt.
What's the trading halt for?
Aussie Broadband said it "is in the process of making and finalising arrangements in relation to a potential capital raising".
The company advised that its shares will remain halted until an announcement is made to the market in relation to the outcome of the proposed capital raising or until Thursday, 9 September.
According to the company's FY21 results, it had $57 million in cash and cash equivalents.
The decision to raise capital comes after the Aussie Broadband share price surged 7.67% to a record close of $4.63 on Monday.
What's next for Aussie Broadband?
Aussie Broadband is looking to continue its strong growth trajectory after a stellar performance in FY21.
The company's FY21 full-year results highlighted an 84% jump in revenue to $350.3 million. Additionally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 433% to $19.1 million.
As a result, the company's loss before income tax benefit came in at $4.2 million compared to a $12.3 million loss in FY20.
The Aussie Broadband share price has surged 23% since its results announcement on 30 August.
According to the company's FY21 results, it is targeting the completion of its fibre build this year. More than 1,200km of Aussie Broadband-owned fibre will be in the ground on completion. This is expected to drive more than $15 million per year in savings from FY23 onwards.
Aussie Broadband managing director Phillip Britt highlighted the upcoming milestone as a catalyst to drive both savings and growth.
"We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure but also through the opportunity to directly connect customers to our own network," Britt said.
Looking ahead, the company said it wanted to become "solutions-focused" rather than just selling connections to customers or third parties.
Aussie Broadband highlighted products under development including security, managed hardware and cloud solutions.
Aussie Broadband share price snapshot
The Aussie Broadband share price has surged 129% year-to-date.
The company successfully debuted on the ASX on 16 October at a listing price of just $1.00.
