Insights

Why is the Propel Funeral (ASX:PFP) share price down 7% today?

Capital raisings can dilute a company’s current share price while opening the door to future growth opportunities.
The post Why is the Propel Funeral (ASX:PFP) share price down 7% today? appeared first on The Motley Fool Australia. –

The ,Propel Funeral Partners Ltd (ASX: PFP) share price is sinking in morning trade, down 6.8% to $4.12 per share.

Below we take a look at the company’s capital raising announcement.

What capital raising was announced?

The Propel Funeral share price is dropping after the company reported it had completed a roughly $52.2 million institutional placement.

Some 12.25 million new shares will be issued to new and existing shareholders for $4.10 per share. Even after today’s 6.8% retreat, that’s still 2 cents below the current Propel Funeral share price.

Atop the institutional placement, the company plans to raise up to $10 million more via a share purchase plan (SPP). The SPP is available to existing eligible shareholders who can subscribe for up to $30,000 worth of new shares. Propel expects the SPP offer period will open next week Wednesday, 27 October.

The company plans to use the proceeds of the placement and SPP to pay down debt and increase its available funding capacity to pursue further growth initiatives and acquisitions.

Commenting on the capital raising, Propel’s managing director Albin Kurti said:

We are delighted by the support received from Propel’s existing institutional shareholders and to be welcoming new institutional investors, who will broaden Propel’s share register. We are also pleased to offer all eligible shareholders the ability to participate in the share offering via the SPP.

We believe this is the right time to further strengthen our balance sheet, as the company seeks to continue to execute on its acquisition led growth strategy in what is a highly fragmented industry.

Propel expects settlement of the placement to occur this Friday, 22 October.

Propel Funeral share price snapshot

Despite today’s dip, the Propel Funeral share price has been a stellar performer in 2021, up 46%. That well outpaces the 11% gains posted by the The All Ordinaries Index (ASX: XAO) year-to-date.

Over the past month, Propel’s shares are up 6%.

The post Why is the Propel Funeral (ASX:PFP) share price down 7% today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Propel Funeral right now?

Before you consider Propel Funeral, 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 Propel Funeral 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 August 16th 2021

More reading

Propel Funeral (ASX:PFP) share price halted ahead of cap raise

Propel Funeral (ASX:PFP) share price on watch after first quarter update

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 recommended Propel Funeral Partners Ltd. 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!