Published 7 September 2018
Steel & Tube Holdings Ltd said yesterday it had to scale the shortfall bookbuild component of its $80.9 million capital raise announced on 7 August, after getting strong support from both existing shareholders & new investors.
After a turbulent period for the business, including a $32 million annual loss after writing off inventory & impairments, Steel & Tube chair Susan Paterson said: “We are pleased with the confidence shown in our future direction by our existing & new investors. Steel & Tube shares have good coverage from the broking community and our more diversified register should increase analyst coverage and improve liquidity.
“We are confident that the capital raise, combined with the new mix of institutional investors, will result in improvements in value for long-term shareholders who have supported the company. The funds raised significantly reduce our debt and ensure that the company has the financial flexibility to pursue its business transformation initiatives.”
The clearing price under the shortfall bookbuild was the maximum price of $1.23/share, a premium of 18c/share over the application price of $1.05 under the offer. Eligible shareholders who didn’t take up their full entitlements, and those ineligible to participate in the rights offer, will receive 18c for ever new share they didn’t take up. Shareholders took up 70.7% of the new shares for a total $42.3 million.
30 August 2018: Steel & Tube completes books-clearing, future already brighter
Attribution: Company releases.