ASX queries Zip Co over share price spike
Zip Co Ltd (ASX:Z1P), a company active in the digital retail finance and payments industry, had to answer to ASX questions today due to a spike in its share price.
ASX referred the change in the price of Z1P’s securities from a low of $12.97 to a high of $14.46 today. The Exchange also noted the significant increase in the volume of Z1P’s securities traded from 15 February 2021 to 16 February 2021.
In light of this, ASX asks Z1P to explain whether it is aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.
In its response, Zip Co said it was not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain the recent trading in its securities.
The company noted that there has been significant interest in the Buy Now Pay Later (“BNPL”) market generally.
Furthermore, specific to Zip, the company has recently advised the market of several positive events, including a successful placement in late 2020 and an oversubscribed share purchase plan in early 2021 raising approximately $176.7 million in total (before costs) to fund Zip’s US growth, UK expansion, new market investments and growth and to support continued investment in Australia and New Zealand’s product range including scaling of Zip Business.
The company also noted its trading update for Q2FY21 announced on 21 January 2021, which confirmed extremely strong quarterly trading results year on year, including record results for Zip US (QuadPay).
Zip Co confirmed that it is in compliance with the Listing Rules.