ASX-Listed Splitit Payments is the latest instalment payments provider to join the rush for fresh capital.

The company announced yesterday it had secured commitments from institutional and professional investors for a $A 10.5 million share placement.

Under the terms of the latest issue, investors will receive one free option for every two shares they acquire through the placement.

Subscribers to the offer will pay 17.5 cents per share for 64.4 million new shares. The options will be exercisable at 20 cents per share.

Splitit managing director Nandan Sheth said subscribers to the placement included investors in Australia and overseas.

“Investors have validated the large market opportunity for our low risk and high conversion instalment as a service offering,” he said.

“The new capital will fuel our three pillars of growth with larger merchants and partners. 

“Additionally, we will be able to accelerate the delivery of innovation, further differentiating our unique white-label platform.”

When the new securities are issued through the placement Splitit will have at least 535 million ordinary shares on issue.

Another 60 million shares could be potentially issued over the next four years subject to strike prices and other conditions being satisfied on a raft of options and performance rights.

Canaccord Genuity acted as lead manager and bookrunner to the placement.

Splitit’s share price closed down 1.5 cents or 7 per cent to 19 cents.