Cash Converters has successfully completed the institutional component of a $25 million equity raising, positioning itself to acquire 29 franchise stores and expand its retail footprint.
- Institutional placement and entitlement offer raised $15.74 million
- Largest shareholder EZCORP fully subscribed and sub-underwrote retail offer
- Total equity raising expected to reach $25 million including retail component
- Proceeds earmarked for acquisition of 29 franchise stores across four Australian states
- New shares to commence trading from 3 November 2025
Equity Raising Success
Cash Converters International Limited (ASX – CCV) has announced the successful completion of the institutional portion of its equity raising, securing approximately $15.74 million through a fully underwritten placement and an institutional entitlement offer. This milestone is a critical step towards the company’s strategic expansion plans, with the total equity raising expected to reach around $25 million once the retail entitlement offer concludes.
The placement involved the issuance of over 16 million new shares at an offer price of $0.305 each, attracting strong demand from both existing and new institutional investors. Eligible institutional shareholders took up about 95% of their entitlements, with the remainder allocated through a shortfall bookbuild.
EZCORP’s Commitment and Influence
EZCORP, the company’s largest shareholder, demonstrated strong support by fully subscribing to its entitlement, investing approximately $8.73 million. Additionally, EZCORP has agreed to sub-underwrite up to $2.18 million of the retail entitlement offer, underscoring its commitment to Cash Converters’ growth trajectory. Following the institutional offer, EZCORP’s voting power will slightly increase to 44.75%, remaining within regulatory limits.
Funding a Strategic Acquisition
The funds raised, combined with existing cash reserves, are earmarked primarily for the proposed acquisition of 29 franchise stores spanning New South Wales, Queensland, the Australian Capital Territory, and Tasmania. This acquisition, under the Cash Converters Investment Group banner, is expected to enhance the company’s retail presence and operational scale. The acquisition is targeted for completion by 1 December 2025, subject to customary conditions and approvals.
Cash Converters CEO Sam Budiselik expressed satisfaction with the strong institutional demand and welcomed new investors to the register, highlighting the company’s ongoing transformation towards longer-term, lower-cost lending and expanded retail offerings.
Retail Entitlement Offer and Next Steps
The retail entitlement offer opens on 3 November 2025 and closes on 17 November 2025, allowing eligible retail shareholders in Australia and New Zealand to subscribe for new shares on the same terms as institutional investors. The company has provided a top-up facility for shareholders wishing to acquire additional shares beyond their entitlement, subject to regulatory compliance and potential scale-backs.
New shares from the institutional offer are expected to settle on 31 October and commence trading on 3 November 2025. The retail offer shares will follow a similar timetable, with trading anticipated to begin on 25 November 2025.
While the board reserves discretion over the use of proceeds, the current plan focuses on the franchise acquisition and associated costs. Investors will be watching closely for the retail offer outcome and the successful completion of the acquisition, which together will shape Cash Converters’ next growth phase.
Bottom Line?
With institutional backing secured, Cash Converters now turns to retail investors and acquisition completion to fuel its next chapter.
Questions in the middle?
- Will the retail entitlement offer meet its $9.26 million target amid market conditions?
- How will the acquisition of 29 franchise stores impact Cash Converters’ earnings and market position?
- Could EZCORP’s increased voting power influence future strategic decisions?