Pioneer taps investors for $10m

Financial services provider Pioneer Credit will raise $10 million in a bid to further its growth opportunities throughout the remainder of the 2024 financial year.

Under the placement, Pioneer said it would issue approximately 22.2 million shares at an offer price of 45 cents per share.

The Perth-based company said it would use proceeds towards acquiring purchased debt portfolios - which along with providing additional growth, would likely result in the company updating its PDP guidance for the 2024 financial year.

“Today’s result reflects the strength of Pioneer’s business," managing director Keith John said.

"Vendor interest in partnering with Pioneer has outstripped our capacity to absorb the volume of accounts currently available and this placement will ensure we can acquire the best of those opportunities available to us."

In the six months up to December 31, the company increased its cash and cash equivalents to $9.2 million, up from $8.4 million from June 2023 - while its earnings before tax, interest, depreciation and amortisation also climbed by 9 per cent to $49.2 million, from $45.2 million during the first half of the 2022 financial year. 

As of 9.15am AWST, Pioneer was trading at 43 cents per share, up 2 per cent.