- Pacific Edge concludes its capital raise of NZ$80 million.
- Cxbladder products’ outperformance a reason for a surge in demand.
- This could mean further growth for the Company in the future.
In a recent announcement, Pacific Edge Limited (NZX:PEB) (ASX:PEB) declared the successful raising of NZ$80 million by Placement.
This well-subscribed Placement was priced at NZ$1.35 each share, which led to an increase in the size of the Placement to NZ$80 million from NZ$60 million, announced previously.
Image source: © 2021 Kalkine Media New Zealand Lt; data source: Refinitiv
As reported last month, the cancer diagnostics business has witnessed a surge, owing to its Cxbladder products doing really well in the COVID-19 setting, especially in the USA, as announced in the Journal of Urology last month.
High-risk conditions were identified better by these products and help was sought at the correct time, which meant saving the patients from a lot of trouble.
This could be one of the primary reasons for an increase in Placement demand.
About PEB’s placement
The NZ$1.35 issue price that was decided for the Placement was on the highest side of the bookbuild range and was representative of a 5.5% discount to the 20-trading day VWAP of NZ$1.43 witnessed on the NZX till 22 September 2021.
It was further added that that Placement had witnessed ample support, which attracted several bidders’ over capacity of NZ$80 million, which was the total amount of the offer.
Since the Company follows the balanced policy of allocation, pro rata allocations were given to those existing bidders bidding for more than their capacity, while there were some new international names entering the register.
New Growth potential for the Company
Chris Gallaher, the Pacific Edge Chairman, was of the view that the demands were indicative of strong endorsement in growth and strategy plans of the Company, witnessing new high-value investors entering the league.
He further added that those funds should help in accelerating the growth of the business and completely realising the Company’s potential.
Soon the retail offer shall be rolled out for eligible shareholders, and it shall help in providing an opportunity or further investment to the existing shareholders, which will pave the way for further growth of the Company.
In Placement, there was the sale of about 59.3 million shares and its settlement is expected to take place on 29 September 2021 for the Australian Exchange and on 30 September 2021 on the NZX along with the commencement of trading and the allotment of the Placement shares for both geographies to commence on 30 September 2021.
On 24 September 2021, the Company last traded at NZ$1.550, up by 5.44%.
Pacific Edge’s oversubscription of Placement is indicative of the tremendous demand of the Company’s shares among interested investors.