Online marketplace Kogan completed its share purchase plan oversubscribed, and decided to increase the amount raised to $20 million, rather than the $15 million initially targeted.
The raise follows the oversubscribed completion of a $100 million institutional placement in June, giving the marketplace $120 million in new capital to fund further acquisitions.
The SPP saw a participation rate of 52 per cent, with almost 7000 shareholders taking part. Due to the strong interest, Kogan has had to alter the terms of the applications, with each eligible shareholder limited to an allotment of approximately 13 per cent of their shareholding, to a limit of $30,000 worth of shares.
This means the maximum potential allotment for new shares lands at 2620 for shareholders that hold 20135 shares or more.
Kogan said it will refund applicants the difference between what they initially applied for and the amount of shares they will be allotted.
The funds will go toward potential acquisitions, the business previously said.
“While multiple opportunities are presenting themselves, the Company will focus on opportunities that are value accretive and broaden its offering, expand its customer base or enhance its operating model,” the retailer said in an earlier statement.
The business has said it is well positioned to take advantage of the accelerated push to online, with a diversified supply chain and a low cost of doing business.
“Our low cost of doing business and digital expertise have put us in the driver’s seat to capture market share as the retail industry undergoes significant change,” CEO Ruslan Kogan said in a statement.