The Nitro Software Ltd (ASX: NTO) share price is edging higher during late morning trade. This comes after the document productivity company provided investors with its retail entitlement offer information booklet today.
At the time of writing, the Nitro share price is $3.86, up 2.93%. The S&P/ASX All Technology Index (ASX: XTX) is down 0.44% to 3,201 points.
It’s worth noting that Nitro shares are within sight of breaking their all-time high of $3.90 reached in early November.
Nitro begins retail entitlement offer
Investors are rallying up the Nitro share price following the company’s latest update. Nitro announced its pro-rata accelerated renounceable entitlement offer has proceeded as planned.
The retail component will see up to 1 share issued for every 11.4 Nitro shares owned to eligible shareholders. Listed at an offer price of $3.43 each, the company is hoping to raise gross proceeds of $23 million.
This comes after the company successfully completed a $37 million institutional entitlement offer and $80 million institutional placement, together raising $117 million. However, the Nitro share price sunk on the day this was announced.
Approximately 17.5 million shares will be created in the retail entitlement offer. The price represents a discount of 9% to the theoretical ex-rights price (TERP) of $3.77. The closing date for the retail offer is 30 November.
Nitro is seeking to build up its balance sheet to fund the acquisition of Belgium’s leading eSign software-as-a-service business, Connective.
Last week, Nitro entered into a binding agreement with Connective for an enterprise value of US$81 million (AU$110 million).
Nitro believes the purchase will further strengthen its position in the fast-growing US$17 billion eSign market.
Connective’s products are expected to significantly accelerate and enhance Nitro’s eSign, eID, and document workflow capabilities.
Nitro share price summary
For the past year, the Nitro share price has continued on an upwards trajectory, achieving growth of almost 30%. When looking at year-to-date alone, the company’s shares are up around 20%.
Nitro presides a market capitalisation of about $764.52 million, with approximately 199.35 million shares on its books.