Augusta Capital Ltd has collected the full $45 million from its 3-part capital-raising over the last fortnight.
The third component, a retail entitlement offer at 1:1.9 shares, closed on Tuesday with the takeup by shareholders falling $3.465 million short.
All 3 stages of the fully underwritten capital-raising were priced at 55c/new share – a quarter of the price attained when the shares peaked in February. That capital-raise price reflected a 31.3% discount to 80c, the last closing price of Augusta’s shares traded on the NZX on 1 May, and a 19.2% discount to the theoretical ex-rights price of 68.1c.
The shares closed yesterday at 65.5c – half a cent below net asset backing.
$11 million was raised through the retail offer, including placement to sub-underwriters, on top of $12.4 million from an institutional placement & $21.6 million from an institutional entitlement offer.
The company said today eligible retail shareholders had taken up 68.4% of their entitlements under the retail offer, leaving 6.3 million new shares for the sub-underwriters.
Australian funds manager Centuria Capital Ltd – which had proposed a full takeover of Augusta, then withdrew it – elected to underwrite 75% of the retail entitlement offer, subject to its final stake not exceeding 24.99% of shares outstanding upon completion of the equity raise.
Centuria Capital ended with a 23.0% stake, but that’s risen to 23.3% after 2.2 million shares to have been issued under the company’s long-term executive incentive plan were cancelled.
Augusta expects trading in the new shares to be issued under the retail entitlement offer will open next Tuesday, 26 May.
8 May 2020: Augusta completes second stage of capital-raise
5 May 2020: Augusta Capital completes first stage of $45 million capital-raising
4 May 2020: Trading in Augusta shares halted
1 May 2020: Augusta forfeits one deposit, second one for property fund still at risk
28 March 2020: Augusta pulls Albany purchase, but property fund may be revived
27 March 2020: Augusta pulls property fund IPO
27 March 2020: Centuria ends Augusta bid
18 March 2020: Asset Plus pulls rights issue
11 March 2020: Asset Plus announces rights offer, Augusta to cut its stake
17 February 2020: Augusta defers tourism fund, expects earnings cut
7 February 2020: Augusta launches new fund next week
24 May 2019: Augusta buys Albany Lifestyle Centre from Argosy for new fund
Attribution: Company release.