Capital Raising

Capital Raisings Wrap: Understanding Winsome's premium raise, Flight Centre soars

Mon 06 Feb 23, 12:22pm (AEST)
businessman working on project for analysing financial report or capital raising
Source: Shutterstock

Key Points

  • Winsome Resources leverages Canada's 'flow through' scheme to raise at a significant premium
  • Flight Centre unexpectedly rallies to a fresh five month high post-raise

A summary of companies that initiated capital raisings last week.

Note: Stocks that trade at less than 10 cents per share have been excluded from this list




Mkt cap

Raise amount

Raise price


3 Feb


Cyprium Metals





2 Feb


Siren Gold





2 Feb


Winsome Resources





1 Feb


Flight Centre





31 Jan


Dreadnought Resources





30 Jan


Kleos Space





Capital raisings of interest 

Winsome Resources: Understanding Canada's "Flow-Through Shares"

Winsome has initiated two capital raisings in the past three months and during this time, its share price has rallied more than 150%. Interestingly, the two capital raisings were held at a 79% and 98% premium.

Canadian-based Winsome is seeking to take advantage of the local 'flow-through shares' program, which enables investors to claim a tax deduction equal to the amount invested, subject to the individual's tax bracket. As Undervalued Equity explains:

Flow-through shares significantly reduce the risk of investing in resource stocks by allowing investors to recover a substantial portion of their original investment through income tax savings. For instance, an individual in a 50% tax bracket who invests $20,000 in a flow-through offering is really only risking $10,000 since he receives $10,000 in tax deductions.

WR1 chart
Winsome Resources 52-week chart (Source: Market Index)

Flight Centre: Flying to New Highs

Flight Centre shares rallied a surprising 8.1% to a fresh 5-month high following the completion of its capital raise. The proceeds would be used to fund the acquisition of Scott Dunn, a high-end travel and tours company based in the UK.

Flight Centre said it expects the acquisition to increase its EBITDA margin by approximately 7% and be mid-teens percentage EPS accretive, prior to any synergies and/or transaction costs.

Goldman Sachs believes Flight Centre shares are trading around fair value, with a Neutral rating and $16.40 target price for the stock as of 1 February 2023.

"We continue to view FLT’s valuation as fully reflective of growth prospects albeit acknowledging the positive pivot in leisure strategy," said Goldman.

Flight Centre share price chart
Flight Centre 52-week chart (Source: Market Index)


Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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