Bubs share price: where next as $35m capital raise almost complete
With Bubs last week completing the institutional portion of its recently-announced capital raise, we examine the details behind the SPP portion of the $35m raise.
The cap raise is almost complete.
Last week Bubs (ASX: BUB) announced plans to raise $35m in fresh funds – made up of a $30m placement to institutional and sophisticated investors as well as $5m from a share placement plan (SPP) to eligible Bubs shareholders.
A fast growing infant formula company, specialising in goat milk formula, institutional players were quick to snap new shares in the company last week.
As a result of this, Bubs issued 31,578,947 new shares at an offer price of $0.95 per share. These New Shares – in all respects – will rank equally to Bubs current shares and are expected to be issued and allotted on December 12 and be tradable on December 16.
The Bubs share price has reacted despondently to news of the capital raise, initially falling 6% after first being released from a cap raise related trading halt.
Practise trading Australian stocks with an IG demo account now
Bubs share price: another billion opportunity
Though one assumes expansion is the purpose of any small-cap capital raise, Bubs noted that it would specifically use the funds to 'accelerate customers acquisition in existing and new markets, advance new product development and meet M&A commitments reflective of the scale we want to achieve and the surrounding market environment.'
Speaking of the outlook following this capital raise, the company’s management team stressed that Bubs would take 'advantage of increased data driven marketing initiates,' 'to maximise efficiency and targeting of key demographics.'
Finally and looking to the new categories that the company may expand into, the Bubs Founder and CEO, Kristy Carr said:
'We will also be developing an innovation pipeline to expand our reach into segments beyond infant formula and toddler nutritional to the $1 billion per annum Chinese junior 4 to 7 year-old nutritionals market, and into expanding goat dairy brands to cater for a growing market for science-based adult formulations.'
The retail side of the equation
Building on the sophisticated side of the raise, the company has today provided further details on its Share Purchase Plan to eligible shareholders.
Like its institutional offer, the SPP will see shares distributed at an Offer Price of $0.95 per share – representing an '11.8% discount to the volume weight average market price of Bubs' shares traded on the ASX over the last 5 days.'
Shareholders will be able to purchase up to $30,000 in SPP shares, in increments of $1,000.
The SPP will open December 9, with the corresponding shares set to be issued on December 30.
The Bubs share price currently sits at $1.005 per share.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
