Service Stream is one step closer to its latest acquisition
The post Here’s why the Service Stream (ASX:SSM) share price is gaining today appeared first on The Motley Fool Australia. –
The Service Stream Limited (ASX: SSM) share price is gaining today following the opening of the company’s retail entitlement offer.
Service Stream released its retail offer booklet before the ASX opened this morning.
As part of the retail offer, eligible Service Stream shareholders will be able to purchase 1 share for every 3 shares they already own, paying 90 cents per share for the extra holding.
Right now, the Service Stream share price is 94 cents – 1.08% higher than its previous close.
Service Stream is a provider of telecommunication and network services.
Let’s take a closer look at today’s news from Service Stream.
Retail entitlement offer
The Service Stream share price is gaining today following the company announcing its retail entitlement offer was open as of 10am this morning.
The retail entitlement offer is the final piece of the company’s capital raising puzzle. It follows a $130 million institutional entitlement offer and placement that successfully closed on 22 July.
The retail entitlement offer is expected to raise another $55 million. It’s set to close at 7pm on 9 August.
To be eligible for the retail entitlement offer, Service Stream shareholders must have been a registered shareholder as of 23 July and live in Australia or New Zealand.
The Lendlease Services business provides services across the telecommunication, utilities, and transport sectors.
Service Stream’s acquisition of Lendlease Services was announced on 21 July.
Service Stream share price snapshot
The Service Stream share price is badly in need of today’s gains.
Right now, it is 47% lower than it was at the start of 2021. It has also fallen 48% since this time last year.
The company has a market capitalisation of around $381 million, with approximately 416 million shares outstanding.
Should you invest $1,000 in Service Stream right now?
Before you consider Service Stream, 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 Service Stream 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
Why the Service Stream (ASX:SSM) share price is heading south today
Here’s why the Service Stream (ASX:SSM) share price is halted
ASX 200 midday update: Kogan FY 2021 update, Altium sinks
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.