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Why the Airtasker (ASX:ART) share price will be on watch today

The Airtasker Ltd share price will be on watch today following an update on recently launched share placement. Here’s the details.
The post Why the Airtasker (ASX:ART) share price will be on watch today appeared first on The Motley Fool Australia. –

The Airtasker Ltd (ASX: ART) share price will be on watch as it comes out of a trading halt today. This follows the company’s update on its recently launched share placement.

Before being temporarily halted at market close last Thursday, Airtasker shares closed at $1.08.

Quick take on Airtasker

Established in 2012, Airtasker is an online marketplace that allows users to outsource everyday tasks to people who are seeking work. Jobs can range from home cleaning, office admin, handyman work, photography, computer and IT support, among others.

Airtasker makes its money from a service fee that is deducted from the agreed offer price of the services.

What was announced?

Airtasker shares could be on the move today as investors digest the company’s impending share dilution.

According to this morning’s release, Airtasker advised it has successfully completed a $20.7 million fully underwritten share placement. Offered to institutional, sophisticated, and professional investors, the placement listed the new ordinary shares at $1 each. This represents a discount of 7.4% on the company’s last closing price of $1.08 on 20 May 2021.

Over 20.7 million new shares will be issued, reflecting around 4.9% of Airtasker’s fully diluted pre-offer issued share capital. The placement received strong support from both new and existing domestic investors. However, the company noted that the allocations of the shares were heavily weighted in favour of existing shareholders.

The newly created shares will be issued using the company’s existing placement capacity. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.

The monies raised will be primarily used to fund the Zaarly Inc. acquisition, a United States-based local services marketplace. In addition, Airtasker will seek to further expand into key city markets across the United States and the United Kingdom.

Share price summary

Since Airtasker’s successful initial public offering (IPO) listing in late March 2021, the company’s share price has remained relatively flat. After accelerating more than 120% within the first few days of listing, profit taking took hold, sending Airtasker shares lower.

On valuation grounds, Airtasker presides a market capitalisation of roughly $424 million, with close to 393 million shares outstanding.

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The post Why the Airtasker (ASX:ART) share price will be on watch today appeared first on The Motley Fool Australia.

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