Afterpay shares rise after $317m placement

Afterpay shares rise after $317m placement

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Afterpay Touch shares have jumped more than five per cent after it completed the $317 million capital raising it hopes will fund expansion in the global buy now, pay later industry.

The ASX-listed firm on Wednesday said it had successfully completed a placement of 13.8 million new shares at $23 per share, well above the $21.75 floor price flagged a day earlier.

The company told the ASX the money raised would underpin its mid-term plan for growth in Australia, the US and the UK.

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“The placement was oversubscribed, and we are also pleased to welcome several new high-quality institutions onto our register,” Afterpay director Elana Rubin said.

Afterpay shares on Wednesday emerged from the trading halt imposed for the capital raising and, by 1015 AEST, were 4.96 per cent higher at $25.37.

Concurrent with the placement, US cornerstone investors Tiger Management and Woodson Capital have bought a combined 2.5 million shares – or $100 million worth – from Afterpay founders Anthony Eisen and Nicholas Molnar, and group executive David Hancock.

Afterpay said an additional share purchase plan to raise another $30 million is set to follow.

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