Zip boosts Aussie exchange to 11-month high with $56m share purchase
Australian buy now, pay later (BNPL) firm, Zip, has raised $56 million in a share purchase plan (SPP), with $26 million of the amount coming from oversubscriptions.
Zip first announced the SPP in December, planning a raise of $30 million with a share price of $5.34. The company eventually issued 10.7 million new shares at a price of $5.29.
Late last year the company raised $120 million in a stock placement underwritten by Merrill Lynch Equities. Zip has already allocated $85 million of that figure into growth plans in the US.
“The additional growth capital will enable Zip to capitalise on the successful acquisition of QuadPay in the US,” said CEO, Larry Diamond, at the time.
Zip spent $296 million on its acquisition of QuadPay. The US firm allows customers to pay in four interest-free instalments over six weeks, either online or in-store.
In the month prior to the buyout, QuadPay reported Monthly transaction volumes exceeding $70 million, a 600% growth from 2019.
Zip’s SPP saw the Australian Stock Exchange experience a rally, pushing it to an 11-month high. The S&P index rose 53.3 points as Zip added $700 million of market capitalisation.
The BNPL firm also predicts an 88% year-on-year revenue increase, with annualised revenue of $480 million.