Dubber (ASX:DUB) share price slides 7% after successful $110 million capital raising

A successful capital raising is dragging the Dubber share price lower on Tuesday.
The post Dubber (ASX:DUB) share price slides 7% after successful $110 million capital raising appeared first on The Motley Fool Australia. –

The Dubber Corp Ltd (ASX: DUB) share price is off to a weak start on Tuesday after the company successfully completed its $110 million capital raising.

At the time of writing, the Dubber share price is down 6.56% to $2.99.

Why the Dubber share price is sliding lower on Tuesday

Dubber successfully raised approximately $110 million from institutional investors in Australia and overseas at a price of $2.95 per share.

The new shares were offered at a 7.8% discount to the last closing price of $3.20.

According to today’s announcement, the new shares will be issued in two tranches.

Tranche 1 will see 33 million shares settled on Friday, 30 July.

While Tranche 2 of 4.2 million shares will be issued subject to shareholder approval at a general meeting on Thursday, 2 September.

The size and discount of the capital raising is likely a factor weighing on the Dubber share price on Tuesday.

What did management say?

Dubber CEO Steve McGovern thanked the company’s shareholders and partners.

We have been gratified by the strong response to the placement, with existing and new investors supporting our vision.

McGovern also commented on the use of funds, saying:

Dubber has a very unique opportunity in front of it to not only become one of Australia’s leading technology companies, but a true global leader in our field. The success of this capital raising will allow us to significantly accelerate our growth objectives, advance M&A opportunities and continue developing Dubber to capture the substantial global opportunity ahead of us.

M&A strategy

Despite the Dubber share price tumbling lower on Tuesday, the company has outlined ambitious plans to drive growth.

In the medium term, Dubber hopes to lift its annual recurring revenue from its current $39 million to $100 million.

Dubber outlined that “active opportunities in M&A expected to drive to conclusion in the coming two quarters”.

The company said that this would add to factors including like-for-like revenue, fast track Dubber product aspirations and product differentiation, and drive technology to increase subscription revenue through new functionality.

The post Dubber (ASX:DUB) share price slides 7% after successful $110 million capital raising appeared first on The Motley Fool Australia.

Should you invest $1,000 in Dubber right now?

Before you consider Dubber, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Dubber wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Why the Dubber (ASX:DUB) share price won’t be moving on Monday
2 exciting mid cap ASX growth shares to watch

Dubber Corp (ASX:DUB) share price hits 52 week high today
2 highly rated ASX tech shares tipped for strong long term growth

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation. The Motley Fool Australia owns shares of and has recommended Dubber Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!