The EML Payments Ltd (ASX: EML) share price is down 2.61% in early trade after the company completed its latest round of capital raising.
Why is the EML Payments share price falling?
The group raised approximately $93 million in equity from its recent Retail Entitlement Offer.
EML launched a fully underwritten, 1 for 5, accelerated pro-rata non-renounceable entitlement offer. The offer closed on Friday and EML will issue 26 million shares at $3.55 per share.
Eligible retail shareholders applied for an aggregated $64 million, which represents a take up rate of 72%.
The shortfall will be allocated to the sub-underwriters of the Retail Entitlement Offer.
What does this mean for the EML Payments share price?
The EML Payments share price hasn't traded at $3.55 per share since back in mid-September, which is why it's under downwards pressure this morning.
However, the group's shares were still up more than 200% as at yesterday's close. EML closed at $4.60 per share which is well up on its $1.48 valuation at the start of 2019.
The EML Payments share price has been surging from record high to record high in 2019 as the payments solution group's earnings have been rocketing.
EML posted strong half-year and full-year results in February and August, respectively.
In the latter, the group posted profit growth of 283% in FY19 with gross payment volumes climbing 34%.
What does the company do?
EML is a payment solutions and software business that has a major presence across Europe, North America and Australia.
The group's market capitalisation has swelled to $1.38 billion this year on the back of its strong gains.
EML's PerfectCard DAC and Flex-e-Card acquisitions have been another big factor in its strong growth trajectory this year.
Foolish takeaway
The EML Payments share price is one to watch in today's trade after completing its $93 million equity raising.
The discounted $3.55 offer price may raise some eyebrows as the company returns to the ASX boards today. So far in morning trade, EML shares have fallen 2.61% to $4.48 per share.
