This CR will have Zip better off moving forward.
Zip chief financial officer Gordon Bell said that the fee had been set at 4.9 per cent of its market capitalisation, at a time the company was trading at around one-fifth of its current market cap of $1.8 billion. Retiring the debt will save Zip $22.5 million in annual interest, given the facility had a fixed annual interest rate of 15 per cent.Outlook for Cash Position Post-Raising:
✅ Strengthened Balance Sheet: The capital raising will significantly strengthen ZIP’s balance sheet by reducing the corporate debt facility, thus lowering interest expenses and financial risk.
✅ Enhanced Liquidity: With the early repayment of debt, ZIP will have improved financial flexibility to pursue growth opportunities and navigate market challenges.
✅ EPS Accretive: The transaction is expected to be earnings per share (EPS) accretive for ZIP shareholders in FY25, meaning it will likely increase the company’s earnings per share.
Ann: Trading Halt, page-279
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$2.79 |
Change
-0.010(0.36%) |
Mkt cap ! $3.642B | |||
| Open | High | Low | Value | Volume |
| $2.80 | $2.81 | $2.74 | $25.49M | 9.190M |
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| No. | Vol. | Price($) |
|---|---|---|
| 4 | 11942 | $2.78 |
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| Price($) | Vol. | No. |
|---|---|---|
| $2.79 | 30971 | 2 |
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| Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
| ZIP (ASX) Chart |