Evolve raises $21.7m from placement, earmarks proceeds for acquisitions

Evolve Education Group (EVO) has confirmed the completion of a placement raising $21.7 million from institutional investors that will be used to fund the next round of acquisitions for the company. 

Approximately 19.7 million new shares in EVO, around 15 per cent of the outstanding share capital, will be issued at an issue price of A$1.10 per share, which represents a 7.9% discount to the closing price of EVO shares on the ASX on 30 March 2021. 

Commenting Managing Director Chris Scott said, “We are delighted with the support for the Placement, confirming the investment community’s belief in Evolve’s value proposition and growth trajectory.”

“The capital raising will contribute to further implementing our Australian expansion strategy, as we believe the current market conditions are highly favorable for centre acquisitions and market consolidation. We look forward to putting investors’ money to work.”

“On behalf of the Board, I would like to thank our existing investors for their continued support, and welcome a number of highly credentialed institutional investors to the register.”

The completion of the capital raise comes after the Group confirmed a change in leadership at its New Zealand operations and also the settlement of five early education and care centres in Australia.

Evolve currently operates around 110 centres in New Zealand and 15 in Australia with five further centres expected to settle by May 2021.