Shares in the ASX newby have been falling lately despite the release of positive news
The post The Airtasker (ASX:ART) share price has fallen 11% in a month appeared first on The Motley Fool Australia. –
Despite announcing what appears to be only good news over the last 30 days, the Airtasker Ltd (ASX: ART) share price has slipped 11.24%.
A month ago, shares in Airtasker would have set an investor back $1.29. Now, the Airtasker share price is trading lower at $1.15. So, what may have been driving the online outsourcing company’s share price lately?
The month that’s been for the Airtasker share price
The Airtasker share price fell 16% between the first trading session of May and its first announcement of the month.
Then, beginning in mid-May, Airtasker released 2 pieces of price-sensitive news to the market, both of which received positive reactions from ASX investors.
Let’s take a look at the recent news out of Airtasker.
On 21 May, Airtasker announced it was to acquire Zaarly.
Zaarly is a San Francisco-based local services marketplace. It has more than 597,000 users and more than 900 service providers.
Airtasker agreed to pay around $3.4 million for Zaarly.
The acquisition of Zaarly is Airtasker’s first overseas expansion effort. It plans to continue its expansion into the United Kingdom in due course. Airtasker’s shares went into a trading halt on announcing the acquisition
To fund the acquisition and its international growth plans, Airtasker completed a $20.7 million capital raising.
The capital raise involved 20.7 million new shares priced at $1 a piece offered to institutional, professional, and sophisticated investors.
The $1 price tag represented a 7.4% discount to the Airtasker share prices’ previous closing price.
The company announced the successful completion of the placement and unfroze its shares on 25 May.
That day, the Airtasker share price closed 12% higher than it did in its previous trading session.
Airtasker share price snapshot
Despite its recent fall, the Airtasker share price is still in the ASX green.
Currently, it’s 9.05% higher than it was when it debuted on the ASX in late March. Its opening share price was just $1.05.
The company has a market capitalisation of around $479 million, with approximately 413 million shares outstanding.