The quest by Steel & Tube Holdings Ltd (NZX: STU) to raise a total of $80.9 million is underway.
The company announced yesterday it had raised $20.8 M through a placement to selected institutions at $1.15 per share.
Chairwoman Susan Paterson, said: “We received strong support from existing institutional investors and were pleased to welcome several new large investors to the Steel & Tube register, including a number of NZ and Australian investment funds.
A similar opportunity will be given to retail shareholders through a fully underwritten pro rata rights offer and shortfall bookbuild.
Funds raised will be used to repay debt “and provide the company with the financial flexibility to execute business transformation initiatives.”
A total of 18,126,605 fully paid ordinary shares were allocated to institutional investors under the placement. Settlement and allotment of the new shares should occur today.
The fully underwritten, pro rata, 1 for 1.9 rights offer component of the capital raising, at NZ$1.05 per share, will open on August 17.
Steel & Tube shares recommenced trading yesterday.