Listed dealer group Snowball has undertaken an $18 million share placement to pay for its new platform arrangements and prepare for acquisition opportunities in a consolidating market.
The capital raising will be used to pay for Snowball’s acquisition of the revenue rights for the Symetry Portfolio Service, managed by Colonial First State, and further the company’s aim to “participate in industry rationalisation”. The group said it is currently reviewing a number of possible acquisitions.
The shares were issued at $0.38 per share to sophisticated and institutional investors — a 5 per cent discount to the five-day volume-weighted average price of Snowball shares. A further $2 million share purchase plan is in the pipeline.
Snowball managing director Tony McDonald said the support for the share placement, which was oversubscribed and taken up by new and existing investors, represented a “strong vote of confidence” in Snowball’s philosophy, market position and strategic direction.
McDonald said the funds would allow his group to take advantage of opportunities as the industry reconfigures in light of changing consumer demands, regulatory reform and consolidation.
