Zip Co (ASX:Z1P) to raise $30M in share purchase plan

Zip Co (Z1P) has announced a share purchase plan (SPP) to raise $30 million.

It comes on the back of a recent $120 million capital raise, where Zip raised the capital from institutions and sophisticated investors.

The SPP offer closes on January 13, with eligible shareholders able to buy up to $30,000 worth of shares at $5.34. However, that figure could be adjusted downwards should the five-day volume-weighted average price (VWAP) on January 13, less 2 per cent, be lower. The lesser of the two figures will be used.

For example, if the five-day VWAP on January 13 is $5.60, a 2 per cent discount will be given, meaning a share price of roughly $5.49. In this instance, the lesser amount of $5.34 will be the issue price.

Conversely, if the five-day VWAP on January 13 is $5.20, a 2 per cent discount will be given, meaning a share price of $5.09. In this example, $5.09 will be the issue price.

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Source: Zip Co (ASX:Z1P) to raise $30M in share purchase plan – The Market Herald