It was another very disappointing day of trade for the IOUpay Ltd (ASX: IOU) share price on Monday.
The Malaysia-based buy now pay later (BNPL) provider’s shares ended the day 13% lower at 53.5 cents.
This means the IOUpay share price has now fallen 37% since peaking at a record high of 85 cents last Monday.
Why is the IOUpay share price under pressure?
Investors have been selling IOUpay’s shares since its surprise and opportunistic $50 million placement last week.
The placement saw sophisticated and institutional investors offered 100 million shares at 50 cents per share. This represented a 28.6% discount to its last close price at the time of 70 cents.
According to the release, the proceeds will be used for growth initiatives…