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G8 Education (ASX: GEM) will seek to raise $11.5 million from existing shareholders to fund its aggressive expansion in the childcare industry.
The Bundall-based company’s capital raising venture announced today will complement the successful placement of 30.79 million shares worth $35.4 million to a private investor last week.
The share purchase plan will allow existing shareholders to invest a maximum of $15,000 at $1.15 per share, a discount on this morning’s market price of $1.335.
GEM has announced the $36.9 million purchase of 21 childcare centres in Victoria and Queensland in the past month and says the capital will be used to fund the expansion plans.
The company has more than 140 centres across Australia.
GEM shares have performed strongly over the past year, increasing in value by more than 150 per cent to today’s price, which rose marginally on today’s news.
Managing director Chris Scott was not available for comment this morning.
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