Ebos raises $175m, more than it sought from underwritten placement

Wednesday 1st May 2019

Ebos says it has raised $175 million from a discounted placement to institutions, $25 million more than it had been seeking.

Chair Mark Waller says the issue was increased to accommodate strong demand from both existing and new institutional investors in New Zealand, Australia and offshore.

“Our strategy has clearly resonated with investors,” Waller says in a statement.

“We look forward to continuing to successfully grow both our healthcare and animal care segments to create further shareholder value.”

Following the placement, Ebos’ pro-forma net debt-to-ebitda (earnings before interest, tax, depreciation and amortisation) ratio will fall to 1.51 times at Dec. 31 from 2.16 times.

Chief executive John Cullity says the proceeds “provide Ebos with with enhanced financial capacity for further strategic acquisitions and organic growth initiatives to continue the long-term growth of the group.”

When the placement was announced yesterday, Cullity said Ebos is considering a number of bolt-on acquisitions to both its healthcare and animal care operations, including healthcare consumer brands, medical devices and pharmacy sector expansion.

He said several organic growth opportunities may also require capital, including funding the development of existing brands into new growth markets such as Asia.

The new shares will be allotted on Monday at $19.70 per share, an 8 percent discount to the closing price on NZX on April 29. UBS New Zealand was the sole lead manager and underwriter for the placement.

Ebos’ statement didn’t say why underwriting was necessary or how much UBS charged.

(BusinessDesk)

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