( NYSE:ZIP) by taking the expected future cash flows and discounting them to today's value. Hence, the resounding answer is no - in fact, both the company and SPP Harvester TM investors mutually benefited.ĭon’t miss out on the next share purchase plan - join SPP Harvester TM.In this article we are going to estimate the intrinsic value of ZipRecruiter, Inc.
#Zip share news zip
On top of that, Zip Co raised additional funds from SPP Harvester TM to support its global expansion. SPP Harvester TM represented a fraction of a single day’s trading. On the day that SPP Harvester TM investors sold their SPP shares, the total volume of Zip shares trading on the ASX exceeded $120m(~16m shares). One particularly noteworthy question to conclude: Was Zip Co worse off because SPP Harvester TM investors sold their SPP shares to other investors? Off the back of the announcement, Zip Co's share price rose 25%, resulting in a 1-day return of 39.1%. SPP Harvester TM investors who were issued their shares from Zip on the 21st of January were concurrently greeted with Zip Co's Q2 results announcement highlighting an 88% increase in revenue YOY.
#Zip share news full
This ensured all SPP Harvester TM investors who applied for the SPP received their full allocation. The disappointing return for institutional investors didn't deter retail shareholders as Zip raised $56.7m(~10.7m shares) in total, accepting oversubscriptions totalling $26.7m. This resulted in a final SPP price of $5.29. A strong capital raising and the popular Buy Now, Pay Later market set the expectation of a profitable return for institutional investors, however, a sharp dip after the placement had institutional investors see a loss of 4.3% 1 day after the placement shares began trading.įor investors in the share purchase plan, the new shares were to be issued at the lower of the Placement Price and a 2% discount to the 5-day volumed-weighted average price leading up the SPP close date.
Offering shares at a 4.1% discount, the Zip Co Placement successfully raised its target amount of $120m(~22.5m shares) at $5.34 per share. The purpose of the capital raise was to aid in the acceleration of offshore growth in key regions such as the US and UK, as well as entering new markets through strategic investments/partnerships in the UAE and EU.ġTo last traded price on 16th December (Placement close date)ĢTo last traded price on 13th January (SPP close date) At the time of announcement, Zip Co was trading at a share price of $5.57. In December, Zip Co announced an equity raising for up to $120m via an institutional placement alongside a $30m share purchase plan. Shortly after, Zip expanded into the US through its acquisition of QuadPay but was met with sharp pullbacks following PayPal’s announcement of its own BNPL product –ĭespite the volatility in trading price, Zip Co continues to bolster its position as a leader in the BNPL sector and in December, looked to accelerate growth through an equity raising.Ī closer look into Zip Co's equity raising BNPL stocks listed on the ASX were up an average of 87% in 2020 and since mid-March 2020 up until February 2021, are up 572%.Īustralia’s second-largest buy now, pay later player Zip Co (ASX:Z1P) has launched itself into the spotlight in 2020, reaching an all-time high of $10.65 per share in late August off the back of a phenomenal FY20 and a unique partnership with eBay Australia. An increase in online shopping and card payments means more people have the option to Buy Now, Pay Later. The Buy Now, Pay Later (BNPL) industry has been one of the biggest beneficiaries of the COVID-19 crisis.
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