Marley Spoon pockets A$16.6M in oversubscribed share placement
May 5, 2020
German-headquartered food kit delivery service Marley Spoon has locked in a A$16.6 million placement.
The company emerged in late March as one of the few winners from the COVID-19 crisis. A combination of panic-buyers depleting supermarket shelves and self-isolation decisions meant consumers were turning to alternative measures to get buy their food.
In late-April, Marley Spoon revealed a 46% revenue increase over the March quarter compared to the same time the year before. In fact, the three weeks following mid-March saw Marley Spoon bank roughly A$37M (€22M ) in revenue.
As such, today’s capital raise has a different tune to what investors might be used to over the COVID-19 mayhem.
Rather than raise cash at a hefty discount to stay afloat amid the pandemic, Marley Spoon is raising the A$16.6 million by placing new shares at A$1.05 each — a marginal 2.8% discount to their last closing price. What’s more, the placement was oversubscribed with strong demand from institutions and eligible shareholders.
Marley Spoon said the new funds will be used to help finance its global expansion. The company said it is well-positioned for future growth on three continents.
Shareholders have taken well to the news, too, with Marley Spoon shares trading a healthy 13.89% higher in early afternoon trade, currently worth A$1.23 each.