Transaction Capital raises R1.7bn through an accelerated bookbuild
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TRANSACTION Capital has raised R1.7 billion through an accelerated bookbuild by issuing 33.09 million new ordinary no par value shares at a price of R35.50 a share, with the proceeds expected to be used in part to finance the acquisition of a controlling stake in WeBuyCars.
Transaction Capital announced, in May, that it has concluded an agreement to increase its stake in WeBuyCars from 49.9 percent to a majority stake of 74.9 percent.
WeBuyCars is a trusted principal trader of used vehicles through its vertically integrated e-commerce and physical infrastructure, offering finance, insurance and other allied products.
The group said on Friday that it was pleased to announce the successful completion of the bookbuild, which was multiple times oversubscribed.
“The placing shares were issued at a price of R35.50 a share, a 4.7 percent and 4.4 percent discount to
the pre-launch 30 business day volume-weighted average price of R37.25 and the close price of R37.15, respectively, as at market close on July 8, which is in compliance with section 5.52(d) of the Listings Requirements of the JSE,” the group said.
The 33.09 million placing shares being issued represent in aggregate 4.9 percent of the company’s issued ordinary share capital, prior to the placing.
The group said that the placing shares, when issued, would be credited as fully paid and rank pari passu in all respects with the existing ordinary shares in the share capital of the company, including the right to receive all dividends and other distributions declared, made or paid after the date of issue of the placing shares.
“An application will be made to the JSE for the listing of the placing shares. Subject to approval by the JSE, listing and trading of the placing shares on the JSE is expected to occur on July 14, 2021, and dealings in the placing shares are expected to commence at the same time,” the group said.
It added that the placing was conditional upon, among other things, admission of the placing shares on the JSE becoming effective and the placing agreement between the company and the managers becoming unconditional, and not being terminated in accordance with its terms, prior to admission.
The bookbuild was opened on Thursday. The capital raised through the bookbuild will be used in part to finance the acquisition of a controlling stake in WeBuyCars, following regulatory approval.
“The balance will be used to fund investment opportunities identified both through the divisions of the group as well as our TC Ventures strategy.
“In addition, this capital will further enhance our financial flexibility and strategic agility to execute on opportunities resulting from market dynamics pursuant to the Covid-19 pandemic,” the group said.
The shares closed 1.53 percent lower at R36.58 on Friday.