One of Afterpay Touch Group Ltd’s (ASX: APT) main rivals, Zip Co Ltd (ASX: Z1P), has entered a trading halt.
Zip Co provides customers with a revolving line of credit to finance their retail purchase with its brands of Zip Pay, Zip Money and Pocketbook. It is one of the largest buy now, pay later providers in Australia. Some of its largest clients include Bunnings Warehouse, Appliances Online, EB Games and Officeworks.
Zip Co Enters A Trading Halt For A Capital Raising
Zip Co has entered a trading halt with it looking to raise capital from sophisticated and professional investors. A further ASX release regarding this will be released soon.
The Australian Financial Review’s Street Talk has speculated that Zip Co is looking to raise $50 million to improve its balance sheet and help fund the company’s growth plans.
It is believed that the company will price the capital raising at $1.50 per share, compared to the current share price of $1.66.
Both Afterpay and Zip Co are delivering impressive growth every quarter, but they are valued too expensively for me to consider buying them.
2 ASX Growth Shares That Could Be Better Value Than Afterpay And Zip Co
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