Zip Co has raised approximately $50 million through an oversubscribed share purchase plan, following the closing of applications on Aug. 14.
The share purchase plan complemented a prior $217 million equity placement.
The proceeds from the share purchase plan will be used to optimise Zip's capital structure and enhance the company's flexibility for future growth.
The plan saw significant participation, with valid applications totalling approximately $85.1 million from 4,301 eligible shareholders.
"There has been a high level of demand for the share purchase plan and I would like to thank our existing shareholders for their ongoing support and confidence in Zip. The proceeds from the share purchase plan will further optimise Zip's capital structure and provide additional flexibility to support future growth," said Cynthia Scott, Zip Group CEO and managing director.
Shares under the share purchase plan were issued at $1.56 each, representing a 2% discount to the five-day volume-weighted average price of Zip shares traded on the ASX up to Aug. 14.
Shareholders who applied for $1,000 worth of shares were not subject to any scale-back, while larger applications were scaled back on a pro-rata basis.
Approximately 32,051,250 new shares are scheduled to be issued on Aug. 21, with trading commencing on Aug. 22.
The new shares will rank equally with existing Zip fully paid ordinary shares.