The Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher during mid-morning trade. This comes after the corporate travel specialist provided an update on its capital raising efforts today.
At the time of writing, Corporate Travel Management shares are 1.59% higher at $21.75 apiece.
What did the company announce?
According to the release, Corporate Travel Management has opened up a share purchase plan (SPP) following a successful placement.
Last week, the company revealed it had received overwhelming support to raise $75 million via an institutional placement. The Corporate Travel Management share price fell on the news.
About 3.6 million shares will be issued at a price of $21.00 per share. This represents a 5.8% discount to the last traded price of $22.29 before the announcement on 14 December.
The company decided to allow its remaining shareholders to participate in a $25 million SPP based on the same terms.
Eligible investors will be able to apply for up to a maximum amount of $15,000 worth of new shares.
The closing date for the SPP will fall on 20 January 2022, and the results will be announced on 25 January.
The funds raised under the placement will be used to support the acquisition of Australian-based travel distribution company Helloworld Travel Ltd (ASX: HLO).
This consists of $100 million in cash and $75 million in shares. The latter will be escrowed for 12 months from the date of completion.
Management believes the acquisition will be highly complementary to its existing Australian and New Zealand corporate travel management operations.
About the Corporate Travel Management share price
Over the past 12 months, the Corporate Travel Management share price has rallied around 24% higher.
On valuation grounds, Corporate Travel Management presides a market capitalisation of roughly $3.06 billion, with approximately 140.43 million shares outstanding.