Atturra Limited Announces Completion of Upsized Tranche 1 Placement
ATTURRA LIMITED (ATA) Share Update November 2024 Wednesday 13th
Atturra Limited Completes Upsized Tranche 1 Placement
Atturra Limited (ASX: ATA) has announced the successful completion of the first tranche of its upsized placement, raising approximately $30.8 million to support its strategic growth initiatives.
Instant Summary:
- Raised $30.8 million through Tranche 1 Placement.
- Issued 29,380,230 new fully paid ordinary shares.
- Shares priced at A$1.05, a 4.5% discount to last closing price.
- Strong support from existing and new investors.
- Settlement expected on 20 November 2024.
Placement Details
Atturra Limited has successfully completed the first tranche of its capital raising initiative, bringing in approximately $30.8 million through the issuance of 29,380,230 new fully paid ordinary shares. These shares were priced at A$1.05 each, representing a 4.5% discount to the last closing price of $1.10 on 12 November 2024, and a 5.6% discount to the five-day volume-weighted average price (VWAP) of $1.113.
The placement was met with strong demand from both existing shareholders and new investors, enabling an upsizing of the tranche. Barrenjoey Markets Pty Limited and Unified Capital Partners Pty Ltd served as joint lead managers and bookrunners, with Morgans Corporate Limited acting as co-manager.
Strategic Growth and Future Plans
Atturra's CEO, Stephen Kowal, expressed satisfaction with the successful capital raise, highlighting it as a significant milestone that enhances the company's ability to pursue strategic growth initiatives. The additional capital will be used to expand service offerings and explore new opportunities aligned with Atturra's growth objectives.
The settlement of the new shares is anticipated to occur on 20 November 2024, with normal trading expected to commence on 21 November 2024. The newly issued shares will rank equally with existing fully paid shares of Atturra.
Upcoming Tranche 2 and Share Purchase Plan
Following the upsizing of Tranche 1, Tranche 2 of the placement will also be upsized, aiming to raise approximately $39.7 million, subject to shareholder approval. Additionally, Atturra has announced a Share Purchase Plan (SPP) targeting to raise around A$6.05 million, offering existing eligible shareholders the opportunity to apply for up to A$30,000 worth of new shares.
The successful completion of Tranche 1 of the placement is likely to bolster investor confidence in Atturra's growth strategy. The upsized placement indicates strong institutional support, which could positively influence the company's stock price in the short term. The additional capital will enable Atturra to expand its market presence and pursue strategic initiatives, potentially driving long-term value for shareholders.
Investor Reaction:
Analysts are likely to view the upsized placement positively, as it demonstrates strong demand and confidence in Atturra's strategic direction. The pricing of the shares at a discount may be seen as an attractive entry point for new investors.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting for Tranche 2 approval and the progress of the Share Purchase Plan. Atturra's ability to leverage the raised capital effectively will be crucial in maintaining momentum and delivering on its growth objectives.