Variety eTailer Kogan has announced that its Share Purchase Plan (SPP) closed on July 03 oversubscribed.
Announcing the plans in early June, Kogan originally aimed to raise $15 million through the SPP, but has increased it by $5 million to $20 million due to a high rate of participation.
The SPP follows the business' successful raise of $100 million institutional placement in June – taking the total raised to $120 million.
In a statement, Kogan said the proceeds of the raising, "provide the financial flexibility to act quickly on future value accretive opportunities."
Kogan states that the SPP was open to 13,000 eligible shareholders and that valid applications totalling more than $115 million were received from approximately 6,700 shareholders, representing a 52.19% participation rate.
The average application amount was around $17,000.
The SPP allowed eligible shareholders the opportunity to subscribe for up to $30,000 worth of new shares in Kogan at an issue price of $11.45 per share.
This price was a 7.5% discount to the business' closing price of $12.38 per share on 09 June.
But due to the strong response from shareholders, Kogan now has to undertake a scale back of those applications.
The scale back will be undertaken on the basis that each eligible shareholder will be limited to an allotment of 13% of the value of their shareholding on the record date (09 June) at a price of $11.45 per share.
The eligible shareholders will be subject to a maximum allocation of $30,000 - being 2,620 shares at $11.45.
Kogan will refund the applicants the difference between the New Shares issued to them and what they applied for on or around July 13.
In a statement Kogan thanked its shareholders for their support.
"The Board would like to thank shareholders for their strong support following the successful completion of the oversubscribed $100 million (before costs) placement to new and existing institutional, sophisticated and professional investors announced to the market on 11 June.
"1,746,733 Ordinary Shares will be allotted and issued under the SPP at $11.45 per share," the business said.
Allotment of the New Shares is scheduled for this Friday, July 10 and are expected to be quoted on the ASX on Monday July 13.
In its business update issued in June, Kogan stated that it grew active customers to over two million by 31 May, with an incremental 126,000 active customers in May 2020.
Gross sales grew by 103.6% across the fourth quarter to date (4QTDFY20) compared to the same period last year, while gross profit also jumped up 130% in the period.