Aussie Broadband has completed a $114 million share placement in an effort to secure merger and acquisitions (M&A), among other growth opportunities.
The placement, which consisted of 28.5 million ordinary shares at $4 per share, is also planned to be used for new business product and technology development as well as potentially additional fibre and network construction.
"We are very encouraged by the strong level of support from new and existing institutional, sophisticated and professional investors,” said Aussie Broadband managing director Phillip Britt.
“We greatly appreciate the backing of existing shareholders who participated in the placement and welcome new shareholders that have joined the register as part of the equity raise.
“There are promising opportunities to execute transformational acquisitions in the business segment that will complement and improve Aussie Broadband’s position in the market.
“We believe this will help us to continue delivering outstanding results for our shareholders and help the company to continue to change the telco game in Australia,” he added.
The telecommunications provider is looking to raise an additional $10 million through a share purchase plan with the issue of new shares, also priced at $4 a share.
The completion of Aussie Broadband’s placement comes days after it made a swap agreement with Victorian government business enterprise VicTrack to swap its fibre network, with each party providing the other with access to their networks.
It also comes after Aussie Broadband announced it had surpassed its 2021 financial year forecast, which saw revenue up 84 per cent year-on-year, to $350 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) up 433 per cent, to $19.1 million for the 12 months ending 30 June.