Stockbrokers Hawkesbury Partners and PAC Partners are in the market with a $4 million equity raising for pet services group Mad Paws Holdings on Wednesday.
The brokers were seeking buyers for 23.1 million shares at 13¢ a share, to raise $3 million via an institutional placement. The raising also included room for $1 million in oversubscriptions and up to another $1 million via a share purchase plan.The deal was priced at a 19 per cent discount to the last close.
Funds raised would be used to create a single online marketplace for its products and services, expansion of its food and nutrition range, marketing and the like, according to terms sent to potential investors. Mad Paws is building a pet services group, seeking to connect pet owners with services and products including pet sitting, day care, grooming, food, insurance and chemist products.The company has 328,000 customers across its platforms. It wants to be EBITDA breakeven in mid-2023.
The group had a $51.9 million market capitalisation prior to the raising. It is backed by Sydney fund manager Bombora Investment Management, which holds a 16.8 per cent stake, and floated in March 2021. The raising comes amid renewed investor and strategic interest in Australia’s $30 billion-a-year pets market, which has seen deals at the big two players