The National Tyre & Wheel Ltd (ASX: NTD) share price is moving into positive territory today. This comes after the company released its share purchase plan (SPP) offer booklet to investors just after market close yesterday.
At the time of writing, the tyre and wheel retailer's shares are fetching for $1.43 apiece, up 1.42%. This means that its shares have now risen more than 15% in the past month alone.
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Share purchase plan details
Investors are sending the National Tyre share price higher following the company's invitation to retail shareholders to participate in its SPP.
Following the successful $9 million institutional placement, National Tyre has extended its offer to eligible shareholders.
Under the SPP, investors can apply to buy a parcel of National Tyre shares for $1.35 per share. The same terms offered in the placement represent a discount of 3% to the volume-weighted average price over 10 trading days from 16 December (when the capital raising was announced).
A minimum application amount of $500 and a maximum application amount of $30,000 can be applied for.
National Tyre is seeking to raise a total of $3 million through the SPP. However, this can be scaled back or increased in size depending on the total value of the applications.
The proceeds raised will be used towards funding a number of initiatives for the company. This includes funding further investment in its digital transformation strategy and working capital, as well as the non-trading indebtedness adjustments associated with the acquisition of Carter's entities.
The closing date for the SPP will take place on 20 January. Allotment of the new shares is scheduled for 28 January, with trading available the following business day on 31 January 2022.
National Tyre share price snapshot
Over the course of the last 12 months, National Tyre shares have accelerated to post gains of 50%.
Based on today's price, National Tyre commands a market capitalisation of around $172.33 million, with approximately 122.22 million shares outstanding.
