Cash Converters International has successfully completed the institutional component of its equity raising, securing $15.74 million. This was achieved through a fully underwritten placement and an institutional entitlement offer. The company aims to bolster its financial position as it eyes strategic expansions. Cash Converters is a retailer and finance provider with operations primarily in Australia and the United Kingdom. They specialise in second-hand goods retailing and providing small personal loans.
The retail entitlement offer, expected to raise $9.26 million, is scheduled to open on November 3, bringing the total equity raise to $25 million. EZCORP, Cash Converters’ largest shareholder, has demonstrated strong support by subscribing for its full entitlement under the institutional offer. Additionally, EZCORP has agreed to sub-underwrite up to $2.18 million of the retail offer, signalling confidence in Cash Converters’ strategic direction.
The funds raised, combined with existing cash reserves, are specifically earmarked for the proposed acquisition of 29 franchise stores across New South Wales, Queensland, the Australian Capital Territory, and Tasmania. This acquisition is a key part of Cash Converters’ growth strategy, expanding its footprint across several Australian states and territories.
The placement experienced strong demand, with 16.39 million new shares issued at a price of 30.5¢ each. The institutional entitlement offer successfully raised $10.74 million through the issuance of 35.23 million new shares, demonstrating solid investor interest in the company’s prospects.