Afterpay to raise $800m as co-founders cash in
Buy-now pay-later (BNPL) giant Afterpay (ASX: APT) will ride significant FY20 sales growth with an $800 million capital raise.
The company’s founders Anthony Eisen and Nicholas Molnar have also decided to sell down 2.05m shares, representing 10 per cent of their respective holdings in Afterpay.
The capital raise is comprised of a $650 million institutional placement, with an underwritten floor price of $61.75 per new share, representing a 9.2 per cent discount to the closing price on 6 July.
A further $150 million will be raised through a share purchase plan (SPP).
The company’s raise comes as it continues to witness growth during the COVID-19 pandemic.
A shift toward online spending, with customers developing an aversion to traditional credit products and an increased focus on budgeting has played in the favour of the BNPL company according to Afterpay.
The company says it will use the additional capital to continue to accelerate growth and comes on the back of the announcement that the company achieved $11.1 billion of underlying sales in FY20 – double what it achieved in FY19.
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