Insights

Why the Raiz (ASX:RZI) share price is edging lower

The RAIZ Invest Ltd (ASX:RZI) share price is edging lower on Tuesday following the release of an update…
The post Why the Raiz (ASX:RZI) share price is edging lower appeared first on The Motley Fool Australia. –

The RAIZ Invest Ltd (ASX: RZI) share price is edging lower on Tuesday.

At the time of writing, the mobile-first financial services platform provider’s shares are down 1% to $1.31.

Why is the Raiz share price edging lower?

The Raiz share price is on the move today after the company announced the completion of its share purchase plan (SPP).

This SPP was part of a wider capital raising announced in April that was aiming to raise a total of $13.2 million from investors. This comprised $10.2 million via an institutional placement and $3 million from the SPP.

While the company successfully raised the $10.2 million at $1.50 per share last month, things weren’t quite as positive for the SPP.

According to today’s release, just 37 retail shareholders took part in the SPP. This led to the company raising just $218,700, bringing its total to just over $10.4 million, which was well short of target.

However, this wasn’t overly surprising given the company’s decision to undertake the SPP at the same price as the institutional placement.

Since announcing the capital raising on 28 April, the Raiz share price has lost approximately 20% of its value. This left the Raiz share price trading 11% lower than the offer price at $1.33 at the close of play on Monday. This means it would have been cheaper to buy shares on-market than take part in the SPP.

Why is the company raising funds?

The company intends to use the proceeds to accelerate customer growth, develop new products and services, and expand into new geographies.

Some of the funds are likely to be used to support the growth plans of the recently acquired Superestate business. Superestate is a niche integrated superannuation and Australian residential property investment platform.

Commenting on the acquisition, CEO George Lucas said: “This acquisition, the first in our five-year history, marks an important milestone for the group by demonstrating organic growth is not our only option to increase funds under management (FUM) and Active Customers. Other acquisitions are on our radar as we actively look for opportunities in the Asia Pacific region.”

“The acquisition provides tangible benefits to the customers of both financial services groups. Raiz secures the capability to offer residential property as an asset class in and outside superannuation in much the same way that we successfully introduced Bitcoin to our customers, giving them a means of investing in cryptocurrency.”

Despite this recent weakness, the Raiz share price is still up over 30% year to date.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

More reading

What’s happening with the Raiz Invest (ASX: RZI) share price?
Why the Raiz Invest (ASX:RZI) share price has slumped 5%
Raiz Invest (ASX:RZI) share price on watch after Q3 update

The post Why the Raiz (ASX:RZI) share price is edging lower appeared first on The Motley Fool Australia.

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!