WiseTech Global Ltd (ASX: WTC) share purchase plan (SPP) has been completed,, raising a total of $35.9 million.
WiseTech Global was founded in 1994 by Richard White to provide software to the logistics sector. Since then it has grown to become a global provider of logistics software, claiming to service 19 of the top 20 logistics companies globally. WiseTech makes money by charging its customers on a ‘per use’ basis rather than as a standard subscription model. Meaning, WiseTech directly benefits as its customers grow their businesses.
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WiseTech’s Share Purchase Plan (SPP)
WiseTech announced that the size of the SPP was increased to $35.9 million from the expected $30 million after strong demand from investors.
In all, 1.7 million new fully-paid shares will be issued to the successful SPP investors on 18th April 2019 at a price of $20.90 per share.
WiseTech CEO and Founder Richard White outlined the plans for the money in a statement.
”We are delighted by the strong support from our retail shareholders in participating in the Share Purchase Plan and we will put these funds to good use in the continued disciplined execution of our growth strategy”, he said.
This strategy involves, “increasing our capacity to accelerate our long-term organic growth, through relentless innovation and the acquisition of strategically valuable assets in important new geographies and key adjacencies”.
The SPP follows on from the underwritten placement that occurred during March, where institutional investors injected an additional $300 million into the business.
WiseTech shares have risen 30% over six months and 131% over the last 12 months. While the prospects for the business are exciting, some analysts are concerned that the hype has taken the share price too far. The average analyst price target for WiseTech shares is $21.23, below the current price of $22.91.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.