Capital Raises Weekly Wrap - 27/08/2021

This week saw a more subdued market with $177m raised across 13 placements with four sectors seeking to raise funds.

The technology and health sectors fared the strongest with the two sectors raisings the most and second most funds respectively across five raises. The materials sectors (as always) saw some action with seven raises across a diverse range of materials companies including lithium, vanadium, and gold. The energry sector was a small contributor with one raise of one million.

Placement Overview

*Placements are limited to those which left a trading halt between 23/08 and 27/08.

Kyckr Limited (ASX:KYK) raised $6m via placement with an additional $0.5m to be raised via a share purchase plan. The funds raised will be used to enable (ASX:KYK) to expand its enterprise sales team and expand its network of strategic partners to accelerate growth and help the company reach cashflow break even. The issue price of $0.04 represented a 9.1% discount to the last close and a 11% discount on the 5-day VWAP.

Bigtincan Holdings Limited (ASX:BTH) raised $21m via placement with an additional $56m raised via an accelerated pro-rata non-renounanceable entitlement offer. Funds will be used to support the acquisition of Brainshark Inc for $116m. (ASX:BTH) is also running a retail entitlement offer to support the acquisition with an aim to raise an additional $56m. The issue price for the offers is $1.05 which represented a 12.1% discount to the last close price.

Virtus Health Limited (ASX:VRT) raised $35m via placement with funds to be used to support the purchase of Adora Fertility and three co-located Healius day hospitals from Healius Limited (ASX:HLS). The issue price of $6.80 represented a 5.4% discount on the last close price of $7.19 and a 6.5% discount on the 5-day VWAP of $7.27.

Sector Breakdown

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Placement Performance

Looking back 90 days to see how placements have performed post placement takes us back to the third week of April 2021. The two top performers this week were a battery minerals company with a focus on lithium in and around Zimbabwe (ASX:PSC) and (ASX:ELT) who are primarily focused on an advanced stage tin-copper and tungsten project in Tasmania.

Top performing:

• Prospect Resources Limited(ASX:PSC) peaked at a 142% increase from issue price 84 days post raise and fell back to an increase of 103% after 90 days.

• Elementos Limited (ASX:ELT) peaked at a 140% increase from issue price 26 days post raise and fell back to an increase of 60% after 90 days.

• Pharmaxis Limited (ASX:PXS) peaked at a 50% increase from issue price 87 days post raise and fell back to an increase of 38% after 90 days.

Worst performing:

• Viking Mines Limited (ASX:VKA) saw a 42% decrease from issue price 90 days post raise.

• White Rock Minerals Limited (ASX:WRM) saw a 38% decrease from issue price 90 days post raise.

• Stemcell United Limited (ASX:SCU) saw a 26% decrease from issue price 90 days post raise.

Check out our Past Capital Raises page for more information on past transactions.