Kiwi Property Group Ltd completed the retail bookbuild component of its $161 million fully underwritten 1-for-11 pro rata entitlement offer on Wednesday.
Chief executive Chris Gudgeon said 74% of all entitlements were taken up by existing shareholders. But there was a clear division of enthusiasm between institutional & retail shareholders – 94.5% of the institutional component was taken up by existing shareholders, but in the retail component it was only 50.4%.
The clearing price under the retail bookbuild was $1.38/share, a 2c premium over the application price. Eligible retail shareholders who elected not to take up their entitlements and ineligible retail shareholders will therefore receive 2c for every new share they don’t take up.
Mr Gudgeon said in June the NZX-listed company intended to use the net proceeds initially to pay down bank debt and reduce gearing, before being used to fund potential investment & development opportunities, including the potential expansion & improvement projects at Sylvia Park, Northlands, The Base, and in the longer term at Drury.
21 June 2017: Kiwi Property seeks $161 million new equity
Attribution: Company release.