The Zip Co Ltd (ASX: Z1P) share price is heading south today, nearing its 52-week low of $1.40.
This comes after the buy now, pay later (BNPL) provider announced the results of its recent share purchase plan (SPP).
At the time of writing, Zip shares are swapping hands for $1.47, down 4.85%. For context, the S&P/ASX 200 Index (ASX: XJO) is down by around 0.8% and fellow fintech share Block Inc (ASX: SQ2) is slumping by almost 7%.
What were the results of Zip's SPP?
In a statement to the ASX, Zip advised it has completed its SPP.
In total, the company raised around $23.98 million – a significant shortfall of the $50 million offered to retail investors.
It appears that concerns the Zip share price could fall further led eligible shareholders to watch from the sidelines.
And indeed, they were right.
The final issue price under the SPP is $1.48 per share.
However, the company's shares fell to an intraday low of $1.46 today. This means you could have picked them up cheaper than the SPP.
For those who did participate under the placement, the allotment of the new shares is scheduled for this Friday. Normal trading of the new shares will commence on Monday 11 April.
Recently, the company successfully completed a $148.7 million institutional placement from a number of institutional, sophisticated and professional investors. The price listed under the placement was $1.90.
Zip previously noted that the proceeds of its capital raising efforts will go towards strengthening its balance sheet.
In addition, it is also looking to shore up funds to execute on the potential synergies from the upcoming transaction. This relates to the $491 million all-scrip acquisition of Sezzle Inc (ASX: SZL).
Zip share price summary
The Zip share price is down more than 85% since its 52-week high of $10.61 reached in April 2021.
The company's share price has continued a downward trajectory, wiping off significant value on investor portfolios.
On valuation grounds, Zip has a market capitalisation of around $986.85 million, with approximately 669.05 million shares outstanding.
