Following a recently completed institutional placement, Frontier Digital Ventures Ltd (ASX:FDV) has raised another $4.1 million from a heavily oversubscribed share purchase plan (SPP).
Capital expectations exceeded
The SPP offer closed on Thursday, May 4, and provided eligible shareholders the opportunity to purchase up to $30,000 worth of new shares at $0.45 each. The purchase price represents a 2.5% discount to Frontier’s five-day volume weighted average share price on Thursday May 11, and a total of 424 valid purchase applications were received.
Though Frontier had only been looking to raise another $2 million, the company’s board elected to increase the size of the SPP offer to accommodate all applications.
“We are grateful for the ongoing support from our existing shareholders, validated by the oversubscription of our SPP,” Frontier Digital Ventures chief executive Shaun Di Gregorio said.
“This response is a testament to the confidence our investors have in the growth prospects and long-term vision of the company.
“The decision to accept all valid applications in full has been made to ensure fairness is provided to our retail shareholders and provides FDV with additional balance sheet flexibility.”
$17.1 million raised in total
Combined with the $13 million raised from the institutional placement in April, Frontier has successfully tapped investors for a total of $17.1 million.
According to an announcement released upon the completion of the placement, the proceeds will be used largely to fund cash payments related to the full acquisitions of Frontier’s Latin-American businesses.
In June 2021, Frontier increased its stake in InfoCasas — the leading property portal in Uruguay, Paraguay and Bolivia — from 51% to 100%.
The company then made a similar move with Encuentra24 — the leading classifieds marketplace in five major Latin American regions — in December, taking its ownership from 26% to 100%.
“We are delighted by the significant progress made by InfoCasas and Encuentra24 since we reached 100% ownership,” Mr Di Gregorio said in April.
“FDV LATAM now represents the largest region in our group by revenue, with an attractive long-term growth and monetisation profile.”
Written by Oliver Gray.