Bapcor Limited (ASX:BAP), a provider of automotive parts, accessories, equipment, and services, saw its shares plummet nearly 50 per cent as trading resumed following a $200 million capital raising. This occurred in conjunction with the release of its half-year results on Thursday. The company stated the institutional component of its $150 million entitlement offer and a $50 million pro rata institutional placement, raised $157 million. Eligible institutional shareholders took up 94 per cent of their entitlements.
The fully underwritten retail entitlement offer is expected to raise an additional $43 million, bringing the total proceeds to approximately $200 million. The offer involves issuing shares at 60¢, representing a 65 per cent discount. Citi analyst Sam Teeger expressed concerns regarding Bapcor’s first-half results, highlighting ongoing shareholder value erosion. The reported loss of $104.8 million significantly exceeded the VA consensus loss of $9.8 million.
Teeger further stated, “It is very difficult to have any confidence in the direction of Bapcor after yet another earnings downgrade, another management alter, and a alter in segment reporting. The magnitude of the discount in the equity raising likely represents these concerns.” Bapcor Limited provides vehicle parts, accessories, equipment, service and solutions. They operate across the automotive aftermarket, serving a diverse range of customers from everyday motorists to trade specialists.
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