WCM Global Growth Limited Announces Successful Share Placement and New Share Purchase Plan
WQG (WQG) Share Update November 2024 Sunday 3rd
WCM Global Growth Completes $41.2 Million Share Placement
WCM Global Growth Limited (ASX: WQG) has announced the completion of a successful share placement, raising $41.2 million, and the launch of a new share purchase plan for existing shareholders.
Instant Summary:
- Raised $41.2 million through a share placement.
- Launch of a share purchase plan at $1.56 per share.
- New shares will receive a fully franked interim dividend of 1.83 cents per share.
- Placement and SPP shares rank equally with existing shares.
- SPP allows shareholders to buy up to $30,000 in shares without brokerage.
Successful Share Placement
WCM Global Growth Limited (WQG) has successfully completed a share placement, raising $41.2 million by issuing 26.4 million shares to professional and sophisticated investors at $1.56 per share. This placement was oversubscribed, indicating strong investor interest.
The settlement of the placement is scheduled for 7 November 2024, with the new shares expected to commence trading on 8 November 2024. These shares will also be entitled to the interim Q1 FY2025 dividend of 1.83 cents per share, fully franked at a 30% tax rate.
Launch of Share Purchase Plan
WQG is also offering a Share Purchase Plan (SPP) to existing shareholders, allowing them to purchase up to $30,000 of shares at the same price of $1.56 per share without incurring brokerage fees. The SPP is open to shareholders registered by 30 October 2024 and will close on 4 December 2024.
The SPP shares will rank equally with existing shares and are also eligible for the upcoming dividend. This initiative provides an attractive opportunity for existing shareholders to increase their investment at a discount to the market price.
Strategic Benefits and Performance
The board believes that the successful placement and SPP will enhance the company's market capitalisation, improve liquidity, and diversify the shareholder base. The funds raised will be invested according to the company's strategy managed by WCM Investment Management, LLC.
WQG's investment portfolio has demonstrated strong performance, with returns of 14.55% per annum since inception in June 2017, outperforming its benchmark. This performance supports the company's progressive dividend policy, which aims to deliver consistent, fully franked quarterly dividends.
The successful share placement and SPP are likely to positively impact WQG's stock by increasing liquidity and market presence. The opportunity for existing shareholders to purchase additional shares at a discount could enhance investor confidence and support the stock price.
Investor Reaction:
Analysts are likely to view this announcement positively due to the strong demand for the placement and the attractive terms of the SPP. The company's robust performance history and progressive dividend policy further bolster investor sentiment.
Conclusion:
Investors should consider participating in the SPP to benefit from the discounted share price and potential for future growth. WQG's strategic initiatives and strong performance make it an attractive option for those seeking exposure to global growth opportunities.