ERoad has opened a share purchase plan for existing shareholders, which is larger than initially indicated, following its $15.5 million capital raising last year.
In December, the company announced its plan to raise at least $18m of new capital, with at least $4m of that coming from an SPP.
Today, it said that has increased to $6m "given the strong interest that investors have shown in the SPP and ERoad's desire to provide its loyal retail shareholder base with an opportunity to participate in the SPP", bringing its total raise to $21.5m.
Existing shareholders will be able to buy a minimum of $1000 and up to $15,000 of shares at a maximum of $3.04 per share, the price paid by investors in its share placement to institutional investors in December.
The price paid will be the lower of a 4.7 per cent discount to the average end of day market price of the shares over the five-day trading period from February 21 to February 27 2018, and $3.04.
Some $5m of the shares sold in the $15.5m placement came from NMC Trustees, its biggest shareholder, which is associated with chief executive Steve Newman. NMC now holds 21.7 per cent of the company.
The share purchase plan opens today and will close on February 27, with shares allotted on March 6.
When it announced the placement in December, Eroad said it would use $4.5m to upgrade customer support systems and as working capital for inventory growth.
A further $5m will replace non-bank lender funding "to simplify ERoad's funding structure and operational activities", and the remaining $8.5 million will build "a digital ecosystem to better collect and analyse transport data and potential inorganic growth."
In an investment presentation accompanying the capital raise announcement, ERoad said it is seeing ongoing growth in New Zealand and Australia, and increasing momentum in North American unit sales.
The shares last traded at $3.60, and have gained 95 per cent in the past 12 months.