Zip Co equity placement announcement

Zip Co Limited (ASX: $ZIP) has successfully completed a fully underwritten equity placement, raising A$217 million before costs. The placement, announced on 17 July 2024, received strong support from new and existing institutional investors. Approximately 139.1 million new fully paid ordinary shares were issued under the placement at a price of A$1.56 per share, representing a 2.8% discount to the last traded price of Zip's shares on the ASX on Tuesday, 16 July 2024.

Executive commentary on equity placement

We are delighted with the extremely strong support we have received from high-quality existing and new shareholders for the Placement. This is a strong endorsement of our strategy and we thank our existing shareholders for their ongoing support and welcome our new shareholders to Zip. The Placement will enable Zip to repay its existing corporate debt, optimize our capital structure and provide Zip with greater flexibility for future growth.

Summary of equity placement and outlook

Zip Co Limited (ASX: $ZIP) has successfully completed a A$217 million equity placement, demonstrating strong support from both existing and new shareholders. The proceeds from the placement will be used to repay Zip's existing corporate debt, optimizing its capital structure and providing greater flexibility for future growth. Additionally, Zip will offer eligible shareholders the opportunity to participate in a non-underwritten share purchase plan to raise up to A$50 million. The company's strategy and the successful completion of the placement reflect its commitment to financial prudence and readiness for future opportunities.