Aussie Broadband to raise $140m for Symbio takeover

The news: Aussie Broadband will raise $120 million through a share placement to boost its balance sheet ahead of its proposed buyout of communications software company Symbio.

The numbers: In addition to the $120 million raised from a fully underwritten placement for institutional investors, Aussie will raise up to $20 million via a share purchase plan (SPP) for eligible shareholders. The bookbuild will kick off at $3.55 per share, a 9.4% discount to the halted price of $3.92. Roughly 34 million shares will be issued under the placement. Shares in the SPP will be offered at a 5% discount to the 5-day volume-weighted average ahead of the SPP closing date.

The context: Aussie Broadband is a smaller player in Australia's telecommunications industry, but grew its revenue by more than 23% in FY23. Aussie is working to build scale across its business segments and build strength in new areas, such as voice over internet protocol (VOIP), Symbio's speciality.