Zip raised an extra $26.7 million from its eager shareholders

Simon Thomsen - January 18, 2021 < 1 MIN READ

Zip CEO and co-founder Larry Diamond

Buy-now-pay-later fintech Zip has nearly doubled the amount it raised in its Share Purchase Plan (SPP), issuing more than 10 million new shares worth $56,739,524.

Zip (ASX:Z1P) set out to raise $30 million through the SPP, but also accepted an extra $26,739,524.95 in oversubscriptions from eligible shareholders, who could subscribe for up to $30,000 worth of new shares, when the offer closed on January 13.

The final issue price under the SPP is $5.29 per share and are expected to hit the market on January 21.

The SPP followed a $120 million (before costs) placement to new and existing institutional, sophisticated and professional investors.

Zip is using the funds to build its international operations.

Zip shares ended the day up 2.14% at $5.73 to end Monday’s trade.

Simon Thomsen

Simon has been editor of Startup Daily since 2019.

He hosted the Startup Daily show on streaming service ausbiz.com.au from 2020 to 2023.

He was previously associate editor of Business Insider Australia, a national restaurant critic, editor of The Good Food Guide, and newspaper proprietor during a 30-year career in journalism and publishing.

He's also an investor in early stage startups.

Simon chaired the environment committee of industry lobby group Australian Business Ltd's (now NSW Business Chamber) during the Kyoto agreement era, debating cow farts with mining execs.