Finance

Propel Funeral Partners raises capital, announces Share Purchase Program

Foundation Partners why I partnered

Propel Funeral Partners of Australia and New Zealand announced last week, in this announcement, that they had raised $AU 50.2 million via a placement with institutional investors.  They also announced that they are offering eligible existing shareholders the opportunity to purchase a total of up to $AU 10 million via a share purchase plan.

Here’s what Albin Kurti, Managing Director of Propel said in the release, “We are delighted by the support received from Propel’s existing institutional shareholders and to be welcoming new institutional investors, who will broaden Propel’s share register. We are also pleased to offer all eligible shareholders the ability to participate in the share offering via the SPP. We believe this is the right time to further strengthen our balance sheet, as the Company seeks to continue to execute on its acquisition led growth strategy in what is a highly fragmented
industry.” 

According to the release, Propel Funeral Partners intends to use the net proceeds of the Placement and the SPP to pay down debt to provide financial flexibility to pursue further growth initiatives, including acquisitions.

According to Propel Funeral Partner’s latest year end financial report, the company has 136 locations  and pulled in $AU 120.4  million ($89.8 million in U.S. dollars) in revenue on 13,916 funeral/cremation services.

The company’s stock is sold on the Australian Stock Exchange and has increased 51.9% year to date through October 22.  The stock closed at $AU 4.33/share on Friday and was listed at $AU 2.85/share on January 1, 2021.  As of Friday, October 22, 2021, the company carried a Price/Earnings ratio of 30 and paid a 2.71% cash dividend.

Here is Propel Funeral Partner’s website

You can find Propel Funeral Partner’s 2021 Annual Report here

Related:  Below you can find the websites for two other public companies in the Death Care consumer realm:

InvoCare — Australia/New Zealand’s largest public death care company — 270+ locations

Dignity plc — Great Britain’s largest public death care company — 877+ locations

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