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Capital Raises Weekly Wrap - 23/07/2021
Capital Raising Wrap
Capital Raises Weekly Wrap - 23/07/2021
The past week in capital raising has seen companies from seven different sectors raising to fund their next stages of growth. The mining sector led the way with (ASX:EVN) raising $400m through a fully underwritten institutional placement to fund a variety of acquisitions in Western Australia, along with three other smaller raises. The industrial sector also saw a large raise undertaken by (ASX:SSM) of $130m when combined with two smaller raises brings the industrial sector total to $143m raised.
The other sectors raised at the smaller end of the market with the finance, consumer, energy, technology, and health sectors combining across six placements to bring in just under $48m.
Placement Overview
*Placements are limited to those which left a trading halt between 19/07 and 23/07.
SelfWealth Limited (ASX:SWF) raised $8.7m via placement with funds to be used to accelerate SelfWealth’s investment in growth strategies. This includes: broadening product offering to include cryptocurrency, upgrading user experience and high-demand features (such as instant payments), and a more aggressive marketing strategy. The issue price of $0.39 represented a 9.3% discount on the last close price of $0.43 and 5.4% discount on the 5-day VWAP of $0.41.
Digital Wine Ventures Limited (ASX:DW8) raised $7.5m via placement with funds to be used to support the recent acquisition of third party wine logistics company Parton Wine Group. Funds will be applied to recapitalise Parton through clearing outstanding liabilities, repaying debt and funding capital expenditure to improve productivity and profitability. The issue price of $0.065 represents a 28.6% discount on the last close of $0.091 and 21.6% discount on the 30 day VWAP of $0.0829. Evolution Mining Limited (ASX:EVN) raised $400m via a fully underwritten institutional placement to fund the acquisition of the Kundana Operations, a 51% interest in the East Kundana Joint Venture, 100% interest in certain tenements comprising the Carbine Project and a 75% interest in the West Kundana Joint Venture from Northern Star Resources Limited. The issue price of $3.85 represents a 5.4% discount on the last close of $4.07 and 2.5% discount on the 5 day VWAP of $3.95.
Placement 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 Capital Raise Performance
Looking back at how some capital raises have performed 90 day post capital raises, it takes us back to the second week of March.
Top performing:
Golden Mile Resources Ltd (ASX:G88) peaked at 130% increase from issue price 16 days post capital raise.
Inca Minerals Ltd (ASX:ICG) peaked at 65% increase from issue price 56 days post capital raise.
Worst performing:
ECS Botanics Holdings Ltd (ASX:ECS) 22.86% decrease from issue price 90 days post capital raise.
Armour Energy Ltd (ASX:AJQ) 18.00% decrease from issue price 90 days post capital raise.
Check out our Past Capital Raises page for more information on past transactions.
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