Australian payments and reloadable card provider EML Payments Ltd (ASX: EML) today confirmed the successful completion of a $93 million retail capital raising.
EML Payments develops financial technology to provide solutions for payouts, gifts, incentives & rewards and supplier payments. It issues mobile, virtual and physical cards to some of the largest corporate brands, processing billion of payments each year, managing more than 1,400 programs across 23 countries in North America, Europe and Australia.
Retail Capital Raising Complete
The video below explains capital raisings.
In a shareholder update, EML noted it was able to sell $93 million of new shares to investors at a price of $3.55 each. With ~72% of retail holders taking part, the capital raising’s underwriters will make up the shortfall.
This part of the capital raising follows a successful capital raising of $156 million last month from institutions. EML Payments CEO Tom Cregan described the institutional raising as pivotal for its decision to acquire European-based Prepaid Financial Services (PFS) for an upfront cost of $423 million.
“The acquisition is a transformational step for EML, expanding and diversifying our customer base, product suite and geographic footprint,” Cregan said at the time.
“PFS is highly complementary to EML’s existing solutions suite and adds digital banking and multi-currency offerings to our existing suite, while expanding our global market footprint and ability to cross-sell PFS’s solutions.”
EML Payments has been one of the ASX’s strongest performers in 2019, rising from around $1.50 to its current price of $4.60.
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