Move Logistics (NZX:MOV): Why is the Company raising capital?

Highlights

  • NZ's famous logistics and warehouse provider, Move Logistics Group has revealed its plans to undergo capital raising for nearly NZ$40 million.
  • The funds thus obtained would be utilised towards business restructuring and funding additional capital initiatives.

Move Logistics Group Limited (NZX:MOV), New Zealand’s leading end-to-end supply chain experts, has announced to go for capital raise worth millions of dollars.

Source: Copyright © 2021 Kalkine Media

Image description: NZX transport stock- MOV

MOV undertakes strategic review to restructure its business operations

The logistics-based company, MOV is planning to raise new capital amounting to NZ$40 million via a fully underwritten renounceable entitlement offer.

The proceeds of the said capital raise would help enable the Company to restructure both its business and brand.

Related Read: How are 3 NZX transport stocks faring in Q4 2021?

Moreover, it would help in funding further capital initiatives like improvising IT systems, modernizing its fleet, entering into maritime leases, etc.

It is pointed out that under the said offer, eligible shareholders can subscribe for one share for every existing 3.06 shares of the Company, at a price of NZ$1.40 per new share, record date being 29 October.

Move Logistics Group has appointed Craigs Investment Partners Limited and Bell Potter Securities Limited as joint lead managers and underwriters to facilitate the above-mentioned capital raise.

While the institutional entitlement offer closes today, the retail offer for eligible shareholders opens from 1 November till 12 November.

Lorraine Witten, MOV's CEO, said the move for business realignment has been undertaken after a thorough strategic review so as to maximise customers’ value and shareholders’ returns.

On 27 October, at the time of writing, Move Logistics Group was trading flat at NZ$1.620.

Bottom Line

Move Logistics Group is well-positioned to drive its growth through organic opportunities, thereby identifying potential acquisition targets and living upto their customers’ expectation.

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