Credit Corp Closes SPP; Valid Applications Exceeded A$10 Million Target

Credit Corp Closes SPP; Valid Applications Exceeded A$10 Million Target

Credit Corp Group Limited (ASX: CCP), a financial company that operates within the Australian debt collection and consumer lending industry, on 7 May 2019, confirmed that the offer period as per previously announced Share Purchase Plan (SPP) closed on 3 May 2019 at 5:00 pm AEST.

On 2 April 2019, Credit Corp Group Limited announced that through the successful completion of fully underwritten institutional placement, the company had raised A$125 million. Further, on 10 April 2019, the company offered the eligible shareholders a further opportunity to acquire additional Credit Corp shares under the SPP. Through this SPP, the company aimed to raise A$10 million which was non-underwritten.

Under the Share Purchase plan, those shareholders who were eligible had the opportunity to subscribe for New Shares without any brokerage or transaction cost for up to A$15,000. The issue price of the shares issued under the share purchase plan were supposed to be lesser of the two options:

  • A$20.45 per new share, the price at which the shares were issued under the fully underwritten institutional placement.
  • 5% discount to the volume weighted average price (VWAP) of the company’s fully paid ordinary share traded on ASX over the five trading days up to 3 May 2019, the closure date of the share purchase plan.

The value of valid applications received significantly exceeds the target of A$10 million for the Share Purchase Plan. Thus, the board of the Credit Corp Group Limited has decided to exercise its discretion as per the terms and condition of the SPP to scale back the SPP applications to a total of A$15 million which be based on pro-rata basis.

The participating shareholders in the SPP will have their allocation scaled back on a pro-rata basis to 39.1 per cent of the application monies received (to increase the SPP value by 50% to A$15 million). Also, the issue price of the share will be A$20.45 per share.

The key objective of the share purchase plan was to provide an opportunity to the non-institutional shareholders to increase their shareholding in the company said Mr Thomas Beregi, the CEO of the company while commenting on the share purchase plan.

There will be around 0.734 million shares that will be issued under the Share Purchase Plan.

On 10 May 2019, the company expects that the shares under the SPP will be dispatched to the participating shareholders and the holding statement on around 13 May 2019.

In 1H FY2019, the company reported an increase in its net profit by 13% to $33.6 million and declared a fully franked dividend of 36 cents. There was an increase in the consumer loan book by 18% to $203 million. The revenue of the company went up by 8% to A$159.164 million. There was an increase in the US revenue as well as initial purchases from two new issuers by 71%.

At present, the shares of CCP are trading at A$23.630, down by 0.55% as compared to its previous closing price. CCP holds a market capitalization of A$ 1.32 billion with approximately 54.18 million outstanding shares and a PE ratio of 16.67x.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

Join Our Discussion

Start discussion with value Investors for ASX Stock Market Investment and Opinion.


6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report