Is WTC In A Buy Zone Now?

  • Mar 30, 2019 AEDT
  • Team Kalkine
Is WTC In A Buy Zone Now?

An ASX listed company, WiseTech Global (ASX: WTC), having a market capitalisation of $7.2 billion as of 28 March 2019, happens to be a leading global developer as well as a provider of software solutions to the logistics execution industry. The company’s flagship product named CargoWise One is an integral link in the global supply chain and executes more than 54 billion data transactions on an annual basis. The company recently made an announcement that they have wrapped up $300 million fully underwritten placement of 14,354,067 fully paid ordinary shares to the existing institutional shareholders as well as eligible new institutional investors involving a price of $20.90.

The issued release by the company had stated that the size of placement was increased to $300 million so that robust demand from the local and global institutional investors can be partially accommodated. The company’s founder and CEO (or Chief Executive Officer) had reflected favourable views.

WiseTech Global had also made an announcement that it is undertaking a fully underwritten $250 million institutional placement which would be followed by an opportunity for the eligible shareholders to participate in Share Purchase Plan (or SPP). Mr. Richard White, WTC’s Founder and CEO, stated that growth is the primary driver and, throughout the global logistics industry, the opportunity which is available to the company is significant. He added that proceeds would be utilized towards continued disciplined execution of the growth strategy. The company stated that the placement to garner $250 million happens to be fully underwritten by the joint lead managers named Goldman Sachs Australia Pty Ltd and Morgan Stanley Australia Securities Limited. They would be conducting variable price bookbuild with the existing institutional shareholders as well as eligible new institutional investors so that the issue price for the Placement can be determined.

WiseTech had also made an announcement about the acquisition of Containerchain with the help of the press release. The release also added that Containerchain is in the business of serving container community of empty container depots, road transporters, container terminals, warehouses, shipping lines as well as cargo owners.

In the release containing information about 1H FY 2019, the company stated that WTC delivered high-quality growth in 1H FY 2019. The company’s revenues amounted to $156.7 million which reflects the rise of 68% while EBITDA encountered a rise of 52% and stood at $48.5 million. These results are reflective of the company’s strategy to accelerate its global growth and industry penetration. The company had stated that, as they are expanding geographically, they are also widening the reach into, and across, the supply chain.

As on March 28, 2019, as per Australian Securities Exchange or ASX, the company is having the annual dividend yield of 0.14%. Let us now see how the company’s stock has performed in the past few months. The stock of WiseTech Global has posted the return of 37.92% in the span of the previous three months, while in the past six months, it delivered a 2.61% return. However, in the past one month, the stock of WiseTech Global posted a 22.99% return.


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