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10/8/2018 — General
Raising begins for Steel & Tube

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.

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