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7/9/2018 — General
Steel & Tube completes bookbuild

Steel & Tube Holdings Ltd (NZX: STU) has completed the shortfall bookbuild component of the $80.9 million capital raise detailed in early August.

The company said strong support was received from both existing shareholders and new investors, with scaling necessary, and the capital raising is now complete.

Chairwoman Susan Paterson, said “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.”

Funds raised will significantly reduce debt and ensure the company “has the financial flexibility to pursue its business transformation initiatives.”

The company’s annual meeting will be held in Auckland on October 25.

Steel & Tube said the clearing price under the shortfall bookbuild was the maximum price of $1.23 per share, a premium of $0.18/share over the application price of $1.05/share under the offer.

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