市场见解

Why the Aussie Broadband (ASX:ABB) share price is frozen on Tuesday

Aussie Broadband is looking to raise capital after a stellar FY21 performance
The post Why the Aussie Broadband (ASX:ABB) share price is frozen on Tuesday appeared first on The Motley Fool Australia. –

The Aussie Broadband Ltd (ASX: ABB) share price won’t be going anywhere on Tuesday after the company requested a trading halt.

What’s the trading halt for?

Aussie Broadband said it “is in the process of making and finalising arrangements in relation to a potential capital raising”.

The company advised that its shares will remain halted until an announcement is made to the market in relation to the outcome of the proposed capital raising or until Thursday, 9 September.

According to the company’s FY21 results, it had $57 million in cash and cash equivalents.

The decision to raise capital comes after the Aussie Broadband share price surged 7.67% to a record close of $4.63 on Monday.

What’s next for Aussie Broadband?

Aussie Broadband is looking to continue its strong growth trajectory after a stellar performance in FY21.

The company’s FY21 full-year results highlighted an 84% jump in revenue to $350.3 million. Additionally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged 433% to $19.1 million.

As a result, the company’s loss before income tax benefit came in at $4.2 million compared to a $12.3 million loss in FY20.

The Aussie Broadband share price has surged 23% since its results announcement on 30 August.

According to the company’s FY21 results, it is targeting the completion of its fibre build this year. More than 1,200km of Aussie Broadband-owned fibre will be in the ground on completion. This is expected to drive more than $15 million per year in savings from FY23 onwards.

Aussie Broadband managing director Phillip Britt highlighted the upcoming milestone as a catalyst to drive both savings and growth.

“We anticipate that our fibre network will start to show financial benefits not only through offloading existing leased infrastructure but also through the opportunity to directly connect customers to our own network,” Britt said.

Looking ahead, the company said it wanted to become “solutions-focused” rather than just selling connections to customers or third parties.

Aussie Broadband highlighted products under development including security, managed hardware and cloud solutions.

Aussie Broadband share price snapshot

The Aussie Broadband share price has surged 129% year-to-date.

The company successfully debuted on the ASX on 16 October at a listing price of just $1.00.

The post Why the Aussie Broadband (ASX:ABB) share price is frozen on Tuesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aussie Broadband right now?

Before you consider Aussie Broadband, 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 Aussie Broadband 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

Why AnteoTech, Appen, Aussie Broadband, & Tyro shares are charging higher

Up 9%, the Aussie Broadband (ASX:ABB) share price hits all-time high
Why Aussie Broadband, Dubber, Regis Healthcare, & Webjet are storming higher

The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next?
Aussie Broadband (ASX:ABB) share price rallies 4% on bumper earnings

Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!