The Pushpay Holdings Ltd (ASX: PPH) share price has returned from its trading halt and is tumbling lower.
At the time of writing, the donor management and engagement platform provider's shares are down 3.5% to $1.72.
Why was the Pushpay share price in a trading halt?
On Tuesday, Pushpay requested a trading halt whilst it launched a bookbuild process to facilitate the sale of a significant combined stake in the company by two existing shareholders.
Former CEO Chris Heaslip was selling 41.67 million shares and Executive Director Chris Fowler was selling 13.01 million shares.
These sales would reduce Mr Heaslip's stake from 4% to 0.20% (which will be held by the Mission 316 Foundation) and Mr Fowler's stake from 2.4% to 1.2%.
According to yesterday's update, the sell down was fully underwritten at a floor price of NZ$1.75 per share. This represented a 7.4% discount to the last closing price of NZ$1.89 on 14 December.
What happened with the bookbuild?
This morning Pushpay revealed that the bookbuild was completed successfully.
According to the release, the 54.68 million shares were ultimately sold for NZ$1.79 per share, which was higher than the floor price and a discount of 5.3% to its last close price.
Pushpay advised that the book was oversubscribed and well supported, attracting bids from 22 institutional investors across New Zealand, Australia, Canada and the US. There was also strong participation from retail investors.
Pushpay's CEO, Bruce Gordon, commented: "We are pleased to see the continued strong support for Pushpay in the market. The transaction attracted significant interest from both our existing and a number of new high-quality institutional investors."
"The successful completion of this transaction further demonstrates that our value proposition and strategy to become the preferred provider of mission critical software to the US faith sector continues to resonate with investors," he concluded.
FY 2021 guidance.
In case you missed it, yesterday the company also confirmed that it is on track to achieve its EBITDAF guidance of between US$54 million and US$58 million for the 12 months ending 31 March.
This represents a 116% to 132% increase, respectively, on FY 2020's operating earnings of US$25.1 million.
However, management has warned that there are uncertainties and impacts surrounding COVID-19 and the broader US economic environment that remain.
