The Aussie Broadband Ltd (ASX: ABB) share price moved into uncharted territory today, reaching a new all-time high. This comes despite the broadband provider not releasing any new information since its Share Purchase Plan offer booklet last week.
At the time of writing, Aussie Broadband shares are flat at $5.04 apiece. It’s worth noting that its shares hit a record high of $5.12 during early morning trade.
What’s driving Aussie Broadband shares recently?
September has been a busy month for the Aussie Broadband share price so far.
The company announced a 10-year deal with VicTrac to swap access to their respective fibre networks. VicTrack is a government business enterprise of the Victorian Government and operates the state’s fibre assets.
The swap will significantly increase the geographic reach of Aussie Broadband’s fibre network, especially into regional Victoria. This is expected to translate to an additional revenue stream for the company.
Aussie Broadband managing director, Phillip Britt touched on the strategic move, saying:
Smart partnerships like this one with VicTrack enable us to not only expand our network beyond what was originally planned, but also frees up capital to improve our reach in other states.
This is a win for Aussie Broadband, a win for VicTrack and most importantly, a win for our customers and their access to high speed, quality internet connections.
The company also updated the ASX with its capital raising program, successfully raising $114 million in an institutional placement.
In addition, Aussie Broadband released its Share Purchase Plan offer booklet to eligible investors to raise a further $10 million.
The proceeds from both placements will be used towards funding a number of initiatives for the company. These include acquisitive growth by mergers and acquisitions, new business product and technology development, and increasing fibre and network assets.
Aussie Broadband share price snapshot
A positive 12 months has led Aussie Broadband shares to accelerate 160%, with most of these gains coming in year-to-date.
Based on today’s price, Aussie Broadband presides a market capitalisation of roughly $1.10 billion, with 218.8 million shares on issue.