It will also raise an additional US$4.15 million from Catcha Group and another shareholder
Exactly a week after Catcha Group‘s online classifieds portal Frontier Digital Ventures’s US$22.9 million fundraising, its online automotive portal has struck gold.
iCar Asia has raised AU$17.5 million (US$13.2 million) through an underwritten placement of 54,687,500 of ordinary shares at an issue price of AU$0.32 (US$0.24) per share — lower than its closing price of AU$0.35 (US$0.26) on August 30 — to institutional and sophisticated investors.
An underwritten placement is a process where investment bankers — who act as underwriters — raise capital on the behalf of investors for corporations or government issuing equity or debt securities. The lead underwriter in this case was Bell Potter Securities Limited.
The newly-raised capital will be used to invest in new products and technology, ramp up marketing efforts, enhance employees’ skill sets and expand into new markets.
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Catcha Group, who owns 28.55 per cent of iCar Asia’s shares, has also agreed to commit AU$5 million (US$3.77 million) within two months, on the same terms of the placement and subject to shareholder approval.
In addition, iCar Asia’s non-executive director Syed Khalil Syed Ibrahim, who is also managing director of automotive dealership Sisma Auto, will commit AU$0.5 million (US$378,000), also on the same placement terms and subject to shareholder approval.
As of June 30, 2016, iCar Asia currently has AU$13 million (US$9.8 million) on hand.
With the announcement, trading half of iCar Asia’s shares will now be lifted. Placement shares are expected to be issued on September 7, 2016.
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