Zip Completes Its Share Purchase Plan, Secures About $56,740,000

​The buy now pay later company, Zip Co Limited (Zip) has completed its Share Purchase Plan(SPP), raising approximately $56,740,000. The successful plan allowed eligible shareholders to subscribe for up to $30,000 of new shares. Zip announced the SPP in December 2020.

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It sought to raise $30 million for planned growth initiatives in the U.S. market, expansion into the U.K, and product growth across Australia and New Zealand. The SPP allowed Zip to scale back applications and/or accept oversubscriptions. Zip elected to take full advantage of more than $26 million dollars in oversubscriptions following the completion of the plan.

When details of the SPP were released in December the forecast issue price was set at $5.34. A volume-weighted average price (VWAP) adjustment was made in January to $5.29. At close 10,724, 674 new ordinary shares were issued at the adjusted price. The SPP followed the completion of Zip's $120 million placement.