Buy-now-pay-later form Zip has completed a fully underwritten equity placement, raising $217 million before costs.
The placement was announced on July 17 and garnered strong support from new and existing institutional investors.
The proceeds from the equity capital raise will be directed towards the early repayment of Zip's existing corporate debt facility and the associated exit fee.
Approximately 139.1 million new fully paid ordinary shares will be issued under the placement.
The final issue price of $1.56 per share reflects a 2.8% discount to Zip's last traded price on July 16 and a 2.6% premium to the underwritten floor price of $1.52 per new share.
"This is a strong endorsement of our strategy, and we thank our existing shareholders for their ongoing support and welcome our new shareholders to Zip," remarked Zip Group CEO and Managing Director Cynthia Scott.
"The placement will enable Zip to repay its existing corporate debt, optimise our capital structure and provide Zip with greater flexibility for future growth," the executive added.
Additionally, Zip will offer eligible existing shareholders the opportunity to participate in the capital raise through a share purchase plan to raise up to an additional $50 million.
Eligible shareholders can apply for up to $30,000 of new shares without brokerage, commission, or transaction costs.
The new shares issued under the share purchase plan will be priced at either the placement price of $1.56 per share or a 2% discount to the five-day volume weighted average price of Zip's shares on the ASX, up to and including the closing date of the share purchase plan on Aug. 14.