Capital Raises Weekly Wrap - 20/08/2021

This week saw action at the smaller end of the market with 13 of the 17 placements being undertaken by sub $100m market cap companies. The placements also occurred across a variety of sectors in the market, with eight different sectors raising capital.

Placement Overview

*Placements are limited to those which left a trading halt between 16/08 and 20/08.

Locality Planning Energy Holdings Limited (ASX:LPE) raised $6m via placement with funds to be used to support customer growth and the roll out of its shared solar product. (LPE:ASX) will issue 30 million fully paid ordinary shares at an issue price of $0.20 together with a free attaching one for two listed option with an exercise price of $0.30, and an expiry two years from the date of issue.

Aspen Group (ASX:APZ) raised $23.2m via placement with funds to be used to part fund our acquisition of a portfolio of apartments in Perth’s inner metro suburbs. (ASX:APZ) intends to refurbish most of the apartments and lease them at competitive rents to their customers. The issue price of $1.33 represented an 11.9% discount to the halt price of $1.510.

Steadfast Group Limited (ASX:SDF) raised $200m via placement with funds to be used to support the 100% acquisition of Coverforce Holco Pty Ltd a large privately owned insurance broker. The issue price of $4.51 represented a 2.4% discount on the dividend-adjusted last close and a premium to the underwritten floor price of $4.35.

Sector Breakdown

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Placement Performance

Looking back 90 days to see how placements have performed post placement takes us back to the second week of April 2021. The top performers have been three mining exploration companies which all at one point across the 90 days post capital raise achieved a 100% increase of issue price, with the top two performs still sitting above a 100% increase after the 90 days.

Top performing:

• Dreadnought Resources Limited (ASX:DRE) peaked at a 244% increase from issue price 74 days post raise and is currently sitting at a 139% increase 90 days post raise.

• Conico Limited (ASX:CNJ) peaked at a 143% increase from issue price 82 days post raise and is currently sitting at a 127% increase 90 days post raise.

• Apollo Minerals Limited (ASX:AON) peaked at a 108% increase from issue price 22 days post raise and is currently sitting at a 62% increase 90 days post raise.

Worst performing:

• Candy Club Holdings Limited (ASX:CLB) saw a 39% decrease from issue price 90 days post raise.

• Kore Potash PLC (ASX:KP2) saw a 30% decrease from issue price 90 days post raise.

• Resapp Health Limited (ASX:RAP) saw a 22% decrease from issue price 90 days post raise.

Check out our Past Capital Raises page for more information on past transactions.