Online-based car retailer and advertising agency Carsales.com [ASX:CAR] has managed to raise $121 million through the second stage of a successful retail entitlement offer by issuing about 6.1 million new shares at the offer price of $19.95 each.
Combined with the institutional component of the offer, the group has managed to raise a whopping total of around $501 million in gross funds.
Carsales says the proceeds will fund another 40% of shares in Webmotors and strengthen its balance sheet.
The share price for CAR was trading at around $22.80 by Wednesday morning, mostly flat on the last closing price.
Within the industry, CAR has been performing well. It has been trading at a 12% advantage on the rest of the sector’s rolling 12-month average. It’s also up more than 18% on the wider market average:
Source: tradingview.com
Carsales retail bookbuild raises further $121 million
The car ads website has announced it has raised $121 million in gross proceeds from retail investors in the second stage of a retail shortfall book build.
This bookbuild was a fully underwritten 1 for 14.01 pro-rata accelerated renounceable entitlement offer, consisting of the issue of about 6.1 million new shares at $19.95 for each new share.
When combined with the institutional component of the offer (that closed on Friday, 10 March), the group’s overall efforts a much greater total of around $501 million in raised proceeds.
The group’s retail shortfall bookbuild consisted of approximately 2.6 million retail entitlements, which were offered under the bookbuild from Tuesday, 4 April.
The bookbuild was noted to have cleared at a price of AU$22.45 per new share, representing a premium of around 12.5% to the offer price of AU$19.95 per new share and a premium of approximately 1.2% to the dividend-adjusted theoretical ex-rights price of AU$22.19.
Carsales says that it will be using the proceeds from its recent fund-raising efforts to fund the acquisition of another 40% of shares in Webmotors. It will also aid them in strengthening the group’s balance sheet, reducing pro forma leverage from December 2022 to 1.9 times.
The new funds will also put the group in an even better position to chase future growth opportunities.
New shares will rank equally with existing shares but will not be entitled to the FY23 interim dividend announced in February.
Settlement of the new shares is expected to take place on Tuesday, 11 April, and distributed the following day.
Cameron McIntyre, Carsales CEO, commented:
‘We are very pleased to have successfully completed the Retail Entitlement Offer and we would like to thank all shareholders that participated and took up their entitlements. It was also important to the company that shareholders who chose not to participate were also able to realise some value for their entitlements.
‘The acquisition of a further 40% interest in webmotors is an exciting opportunity for carsales and we look forward to continuing to grow the business in the attractive Brazilian automotive market alongside Banco Santander (Brasil) who, following successful completion of the acquisition, will be a 30% shareholder and partner in the business.’
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