NZX-listed Eroad says it plans to raise about $50 million via a $42m underwritten placement at $3.90 a share, together with an $8m share purchase plan.
Eroad, which offers a GPS fleet-tracking system, said it had been admitted to the Australian Stock Exchange (ASX) and its shares would start trading there tomorrow.
The stock last traded at $4.35 before it went into a trading halt this week, amid speculation it planned to raise funds.
The company intends to retain its NZX listing and New Zealand base.
"With the ASX listing, now is the opportune time to raise capital which will increase liquidity, broaden our investor base and allow Eroad to accelerate its growth strategies as it heads towards 250,000 connected vehicles," chairman Graham Stuart said.
In today's announcement, Eroad said it would remain in a trading halt until the completion of the placement, or by the market's open tomorrow.
The placement has been pitched at $3.90 (A$3.59) per share, representing a 10.3 per cent discount to its last traded price. The share purchase plan will open on September 23 and close on October 2.
"The proceeds from the capital raise will be used to accelerate execution of Eroad's growth strategies by investing in Eroad's platform via product development and sales and marketing," it said.
NMC Trustees Limited, as trustee of the NMC Investment Trust, Eroad's largest shareholder, plans to offer up to 1.4 million shares - or 10 per cent of its holding - for sale, concurrent with the placement.
Steven Newman, the chief executive of Eroad, has an indirect interest in the shares held by NMC Trustees.
"Steven remains fully committed to Eroad and NMC Trustees is expected to remain Eroad's largest shareholder post sell-down," the company said.
Bell Potter Securities Limited and Canaccord Genuity (Australia) Limited acted as joint lead managers and underwriters to the placement.
The company, in an accompanying earnings outlook, said it remained confident of continued growth in contracted units, albeit at lower levels than delivered in its 2020 financial year to March 31.
Its full-year earnings were expected to be affected by Covid-19 debtor collectability as well as continued investment in future growth and improvements in operating leverage.
For the first half of the 2021 year, Eroad is anticipating revenue of between $43.5m and $44.5m, and Ebitda between $12m and $14.2m.