Another institutional placement for Rakon

Rakon Corporation has made a second institutional placement to fund business expansion within a month, issuing 18.8 million shares at $1.15 each to raise $21.65 million.

The crystal and quartz GPS and cellphone componentry maker announced a placement of $45 million worth of shares, underwritten at $1.10 each, with institutional investors on 23 September, and announced the intention to raise a further $20 million. 

Rakon shares last traded today at $1.19. 

Approximately half the $65 million of new capital sought is earmarked to start work on a new manufacturing plant in Chengdu, in southwest China, where Rakon sees the greatest opportunity in the bounceback in demand that is occurring and China continues to dominate at manufacturing high value items requiring precision parts.

Representing 12.26% of the issued capital of Rakon, the shares were fully paid in cash, the company said in a pro forma announcement to the NZX, and were issued “to fund business expansion”. 

There are now 172.3 million Rakon shares on issue. 

Businesswire.co.nz

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