Daily Price Movement / General Discussion, page-17939

“Negatives/Concerns- On the negative side, brokers note the potential dilution from the issue of convertible notes, although this has allowed Afterpay to increase ownership of the US business. The purchase of the Matrix Capital stake in Afterpay US and subsequent $1.25bn capital raising surprised Wilsons yet the transaction is considered the next step to a dual listing.This would be a precursor to a truly global launch, which in turn would require incremental capital for the listing in the US. Greater control is well and good but UBS questions the transaction, as it implies a value for the US business that is 28% of Afterpay's market capitalisation, considered too low.Afterpay has now raised more than $2bn in capital since July which UBS believes vindicates its view that the market is mis-pricing or ignoring just how much capital is required to fund the company's growth strategy”