Friday 20th April 2018
|Text too small?|
Fletcher Building completed the institutional component of its $750 million capital raise, with investors paying a premium to the discounted offer in a bookbuild to clear the leftover entitlements.
Investors took up the remaining 2.2 million entitlements in the bookbuild at a clearing price of $6.15 apiece, more than the $4.80 entitlement offer and the theoretical ex-rights price of $6 a share, Auckland-based Fletcher said in a statement. The institutional component of the capital raise has generated gross proceeds of $515 million, with a 98 percent take-up meaning there was a limited number in the shortfall bookbuild.
Fletcher's shares resume trading today, having been halted at $6.27 ahead of the capital raise. The funds raised from the pro-rata one-for-4.46 accelerated entitlement offer at $4.80 a share will go towards repaying debt as the construction and building products company seeks to strengthen its balance sheet.
The stock has dropped 18 percent so far this year as cost blow-outs from its Buildings + Interiors division breached its banking covenants, and the firm is still in talks with its US Private Placement noteholders.
Fletcher also plans to sell its Formica and Roof Tile Group international businesses, withdrawing to the Australia New Zealand region, which Morningstar Research analysts estimate are worth about $700 million.
The retail component of Fletcher's capital raise opens on April 23 and closes on May 11, and will be followed by a bookbuild for any entitlements not taken up.
No comments yet
MARKET CLOSE: NZ shares up on A2 Milk rebound; Fletcher, Comvita drop
NZ dollar holds gains against greenback as markets fret about global trade
NZ's commercial drone operators mostly filming, aerial mapping, upbeat about outlook: survey
Resurgent Chinese visitors offset lethargic tourism sector
Oceania Dairy, Yili's NZ dairy processor, grows sales and losses supplying parent
Show us you’re clean: FMA, Reserve Bank send letter to life insurers
Metro Performance Glass says new strategy is about going back to basics
RBNZ needs to be 'far more aggressive' to shed gender imbalance, Orr says
Rosanne Meo looks for 20-year term as Briscoe Group chair
Metlifecare to add $180M Beachlands village as sector hunts greenfield sites