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The BWX Ltd (ASX: BWX) share price is climbing in morning trade today, up 1.36% to $4.85.
Below, we take a look at the update of the share purchase plan announcement released by the personal care products company this morning.
What investors need to know about the share purchase plan
The BWX share price is gaining after the company revealed its share purchase plan (SPP), announced last Friday, opened to eligible shareholders in Australia and New Zealand this morning.
BWX will issue news shares at $4.85 per share. That’s priced the same as its institutional placement, which was completed on 1 September and raised $85 million. The BWX share price slipped on that day and closed yesterday at $4.79 per share.
The company notes the issue price of $4.85 per share is an 8.7% discount to the BWX share price of $5.31 at close on 26 August.
That was the last day of trading before the company went into a trading halt pending its announcement of the placement offer.
However, the BWX share price closed yesterday 10% below the 26 August close. It was also 1.3% below the share purchase plan offer.
The company expects to raise $15 million under the SPP. However, it retains the right to increase or decrease that depending on the level of demand.
Eligible shareholders can subscribe to up to $30,000 of new shares, without paying any brokerage or transaction costs.
BWX expects to close its SPP at 5pm AEST on Thursday, 23 September.
What management said
Commenting on the rationale behind the capital raising, BWX chairman Ian Campbell said:
The offer is being undertaken in conjunction with the placement to principally fund the acquisition of a 50.1% majority interest in Go To Enterprise Holdings Pty Ltd, the owner and operator of the ‘Go To’ skin care business by the company and associated costs.
Go-To is an Australian skin care range that provides simple, trusted and effective skin care to the ‘masstige’ market… BWX expects the acquisition of Go-To to be EPS accretive in the first full-year of the partnership with Go-To.
BWX share price snapshot
The BWX share price is up 18% in 2021. This compares to a gain of 14% on the All Ordinaries Index (ASX: XAO).
Over the past month, BWX shares are down 3%.