WiseTech Global Limited (ASX: WTC) is into the designing and development of cloud-based logistics software solutions. The Company offers forwarding, customs clearance, liner and agency, warehousing, and land transport solutions. WiseTech Global operates worldwide.
The company, today on 19 March 2019, updated that it is undertaking to take a fully underwritten $250 million institutional placement (‘Placement’). The placement is expected to be followed by the chance for entitled shareholders to take part in a Share Purchase Plan.
WiseTech Global Founder and CEO, Richard White, said that the Growth is the company’s primary driver and, across the global logistics industry, the opportunity which is now available to WiseTech is vast. Mr. White stated that the proceeds realized from the Offer shall be used in the continued disciplined execution of the company’s growth strategy. Through this Offer, the management wishes to add further strength to the company’s balance sheet and increase the capacity at which it can accelerate its long-term organic growth, through relentless innovation and the acquisition of strategically valuable assets in important new geographies and key adjacencies.
The Placement to raise $250 million is fully underwritten by Joint Lead Managers, Goldman Sachs Australia Pty Ltd and Morgan Stanley Australia Securities Limited who will conduct a variable price bookbuild with existing institutional shareholders and eligible new institutional investors to determine the issue price for the Placement (‘Placement Price’).
The final Placement Price is expected to be announced to the ASX on 20 March 2019 before the resumption of trading in WiseTech Global. The Bookbuild is expected to involve between 3.9% - 4.1% of existing WiseTech Global shares on issue, based on an indicative price range of $20.30 - $21.50 per new fully paid ordinary share. This represents a discount of 7.2% - 12.4% compared to the latest closing price of $23.18 (on the 18th March 2019) and a discount of 3.0% - 8.4% to the 5-day VWAP to 18 March 2019 of $22.17.
New fully paid ordinary shares to be issued under the Placement will rank equally with existing WiseTech Global Limited entirely ordinary paid shares, except they will not be entitled to participate in the SPP. Shareholder approval is not needed for the Placement, as WiseTech will utilize a portion of its existing placement capacity under ASX Listing Rule 7.1.
Following completion of the Placement, WiseTech Global will also offer eligible shareholders in Australia and New Zealand the opportunity to participate in a non-underwritten SPP to raise to $30 million.
The issue price under the SPP will be the lower of the Placement Price or a 2% discount to the 5-day VWAP to the Closing Date of the SPP, which is currently scheduled for Thursday, 11 April 2019.
Also, the securities of the company have been put on a trading halt. The trading halt has been put on hold, following a specific requested by the company to allow the Placement to take place in an orderly fashion. The Company anticipates that the trading halt will cease upon it, post announcing the outcome of the Placement.
On the price-performance front, the stock has posted the YTD return of 36.11%. The company also has posted returns of 11.60%, 30.08% & 2.39% over the past six, three & one-month period respectively. At the time of writing (19 March 2019, AEST 02:20 PM), the stock of the company is under the trading halt & thus last traded at a price of $23.18, with a market capitalization of ~$ 6.98 Bn. It had a 52-week high price of $ 25.000, with an average volume of, 663,556 approximately.