The Zip Co Ltd (ASX: Z1P) share price has climbed 2.5% higher in early trade after the company exceeded its planned $5 million share purchase plan (SPP) by a whopping $37.8 million.
What did Zip announce to the market this morning?
Zip advised that its SPP announced to the market on 14 March 2019 and closed on 11 April 2019 was oversubscribed which has seen the share price soar higher.
The SPP allowed eligible shareholders the opportunity to subscribe for up to $15,000 worth of new shares in Zip at the discounted price of $1.53 per share.
Zip sought to raise up to a maximum of $5 million under the SPP and reserved the right to scale back applications under the SPP if the total value of funds raised exceeded $5 million.
The SPP follows the successful completion of the oversubscribed $42.8 million placement to new and existing institutional, sophisticated and professional investors announced the market on 14 March 2019. Westpac also exercised its top-up rights in full, raising an additional $8.9 million as announced to the market on 1 April 2019.
Is Zip a better buy than Afterpay?
The Zip share price has climbed 147% higher so far this year on strong earnings and a favourable result from the recent Senate inquiry into "buy now, pay later" service providers.
Rival fintech Afterpay Touch Group Ltd (ASX: APT) has also surged higher to continue its 2018 bullish run, with the current $25.04 per share valuation more than double where it was at the start of the year.
I'm quite bullish on the "buy now, pay later" providers and believe that Zip could still expand further in much the same way that Afterpay has pushed beyond Australia into the United States and the UK.
Afterpay's $6 billion market cap still dwarfs Zip's $950 million valuation but the company could break the $1 billion barrier if it continues to push towards its 52-week high of $2.81 per share.
For those who want to look for growth outside of the Information Technology sector, this top-rated stock could boost portfolio gains as it continues to soar in a $22 billion industry.
