The online auto listings company is making progress on its expansion plans…
The post Why the Carsales (ASX:CAR) share price will be in the spotlight today appeared first on The Motley Fool Australia. –
At Monday’s market close, Carsales shares finished the day at $18.90.
Equity raising efforts
The Carsales share price will be in focus today after the company advised it has raised approximately $115 million (before costs) through a retail entitlement offer. The retail component, following the company’s institutional offer, will see 1 share issued for every 6.99 existing shares owned.
Over 8,300 eligible retail shareholders participated either partially or fully in the retail entitlement offer. This represents an aggerate take-up of roughly 67% by value of applicants. As a result, about 6.8 million Carsales shares will be created and allotted to shareholder accounts this Friday 11 June.
For the remaining 3.4 million retail entitlements not taken up, the company will offer the shares in a retail shortfall bookbuild. This allows investors who missed out on the opportunity, along with ineligible retail shareholders, to participate in the offer to buy Carsales shares. The company noted that the retail shortfall bookbuild will be a variable price beginning with a floor price of $17.00 per new share.
Together with the institutional offer (raising $428 million), Carsales is expected to successfully raise a total of $600 million. The retail shortfall bookbuild will fill the remaining $57 million, bringing the entire retail entitlement offer to $172 million.
The proceeds of the equity raising will be put towards acquiring a 49% interest in Trader Interactive for $800 million.
Carsales share price summary
Established in 1997, Carsales is Australia’s largest online automotive, motorcycle and marine classifieds business. The group also operates in South Korea, and has interests in Mexico, Argentina, Chile, and Brazil.
Since this time last year, Carsales shares have lifted by more than 16%, but have fallen by about 4% in 2021. The company’s shares reached a 52-week high of $22.62 in October, before moving in peaks and troughs along the way to their current value.
On valuation grounds, Carsales ranks 99th on the ASX with a market capitalisation of roughly $5.1 billion. The company has over 271 million shares currently on its registry.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of May 24th 2021
Motley Fool contributor Aaron Teboneras 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 recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.