Asian automotive marketplace iCar Asia Limited announced raising A$23 million ($17.4 million) of new capital through placement of ordinary shares to institutional investors.
The placement has already raised A$17.5 million through the issue of approximately 54.7 million ordinary shares at 32 cents apiece, representing an 11.1 per cent discount to the last closing price of iCar shares on 30 August 2016.
Malaysia-based technology investment firm Catcha Group Pte Ltd, which bought 28.55 per cent in iCar last year, has committed A$5 million within two months, on the same price and terms as the placement. Non-executive director Syed Khalil Syed Ibrahim has also subscribed to $500,000 of shares on the same terms.
The subscriptions are subject to shareholder approval at a general meeting of iCar. Catcha Group will not be entitled to vote at the meeting.
“The proceeds of the placement will be used to expedite growth by investing in innovative new product and technology, increased marketing, enhanced employee capability and geographical expansion with the goal of accelerating iCar’s revenue profile and future profitability,” the company said in a release.
As of June 30, 2016, iCar had $13 million in cash on hand.
Bell Potter Securities Limited acted as lead manager and underwriter for the placement, which is expected to settle on September 6, 2016.
Normal trading of iCar shares on the Australia Stock Exchange resumes on Friday. The placement shares will be issued next Wednesday.
iCar is currently a leading network of automotive portals, operating several brands including Carlist.my and LiveLifeDrive.com in Malaysia, Mobil123.com in Indonesia, and One2Car.com, Thaicar.com and Autospinn.com in Thailand.