The innovative fintech firm cemented its place as a "buy now, pay later" leader
Baker McKenzie has assisted its client, Afterpay, in a successful AUD 1.05 billion capital raising, propelling the fintech firm into the ASX top 20.
The deal is split into a AUD 650 million placement, a AUD 150 million share purchase plan, and a AUD 250 million sale of shares by the two Afterpay co-founders and executives, Nick Molnar and Anthony Eisen.
Baker McKenzie's multinational team of lawyers successfully completed the deal in a short period of time, transacting seamlessly despite the challenges posed by COVID-19. The work included US securities law input from our specialists in Singapore.
Guy Sanderson and Antony Rumboll—partners in Baker McKenzie's Sydney office—led the team. Sanderson said the size, speed and demand for the deal underscores the success that buy now, pay later businesses are experiencing in response to global shifts in consumer behaviour.
"Afterpay is flourishing during what is otherwise a difficult time," Sanderson said. "They are in a red-hot sector of the market representing a shift towards online and digital, and they are the forefront of that shift in consumer behaviour around the world."
Baker McKenzie has acted for Afterpay since the company's initial public offering in 2016, and has since assisted in multiple rounds of capital raising, as well as in the company's expansion to other markets.
Sanderson said Baker McKenzie was pleased to support an important client, and that the deal was "exceptionally well supported by existing and new shareholders."