Zip raises over $56.73 million in oversubscribed Share Purchase Plan

By Edil Corneille

Sydney-based Zip Co announced the closure of its Share Purchase Plan (SPP) and has raised $56,739,524.95, including oversubscriptions of $26,739,524.95 which it has accepted in full. Zip sought to raise up to approximately $30 million under the SPP and reserved the right to increase this cap and accept oversubscriptions and/or scale back applications under the SPP at its absolute discretion.

The SPP allowed eligible shareholders, being those shareholders who were on the Zip register at 7:00 pm (Sydney time) on Tuesday, December 15, 2020, the opportunity to subscribe for up to $30,000 worth of new shares in Zip (subject to the terms and conditions of the SPP) at an issue price equal to the lesser of:

• $5.34, being the price at which shares were issued under the placement; and
• The volume weighted average price of Zip’s shares traded on the ASX during five trading days up to and including Wednesday, 13 January 2021 (being the date the SPP offer closed), less a 2% discount rounded to the nearest cent.

Zip confirmed the final issue price under the SPP as $5.29 per share. Allotment of the new shares is scheduled for Wednesday, January 20, 2021, and the new shares are expected to be quoted on the ASX on Thursday, January 21, 2021.

It was announced this month that AsiaPay, a digital payment service and technology player, is offering merchants in Australia the ability to accept digital mobile wallet payments via Zip, with a simple, secure, and private way to make payments that are fast and convenient.

Zip is a player in the digital retail finance and payments industry, offering point-of-sales credit and digital payment solutions. The company is focused on offering transparent, responsible and fairly priced solutions to consumers and SMEs.