Aspen Group (ASX:APZ) is raising up to AU$74 million through a placement and a share purchase plan to improve its growth prospects and meet increasing demand for affordable housing in Australia, according to a Thursday filing with the Australian bourse.
The equity raising consists of an institutional placement to raise AU$70 million and a securityholder purchase plan to raise up to AU$4 million, the filing stated. Both are priced at AU$2.90 per APZ security and are non-underwritten, it added.
MST Financial Services and Aitken Mount Capital Partners are the placement's joint lead managers.
In the same filing, Aspen maintained its full fiscal year underlying operating earnings guidance of AU$0.167 per share, a 21% increase year on year. It also reaffirmed its dividend per security guidance of AU$0.10, up 18% on FY2024.
Net rental income for the first 10 months of the fiscal year ended April 30 was AU$29.3 million, up 13% on the prior year.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.