gold stocks postpage LB desk

Freedom Foods Group Successfully Completed Institutional Entitlement Offer and Placement

  • May 27, 2019 03:57 PM AEST
  • Team Kalkine
Freedom Foods Group Successfully Completed Institutional Entitlement Offer and Placement

Freedom Foods Group Limited (ASX: FNP) provides a range of high value added dairy based protein ingredient solutions to its customers.

non AMP MTF 10th feb webinar

In an announcement made on 27 May 2019, the company announced that it has successfully completed the institutional component of the $130 million equity raising which was announced on 23 May 2019. Following the release of this news, the share price of the company increased by 3.125% during the intraday trade as on 27 May 2019 (AEST 1:00 PM).

The company raised a total of around $119.3 million from the institutional portion of the pro rata accelerated non-renounceable entitlement offer and from the institutional placement.

The placement received a strong demand from various high-quality institutional investors, therefore making it oversubscribed and besides that, the Institutional Entitlement Offer was also supported by existing institutional shareholders with a take-up of approximately 92%.

The offer for the balance of the retail component of the Entitlement Offer i.e. $11.2 million is going to open on 29 May 2019 and is scheduled to close on Tuesday, 11 June 2019.

As per the company’s announcement, all New Shares which are issued under the Equity Raising are going to rank equally in all respects with existing ordinary shares in Freedom Foods from the date of issue.

The funds raised from the Equity Raising will be used by the company to fast track the capital expenditure programs in nutritional ingredients. Further, the funds will also be used to support the increased working capital requirements to meet the growing demand.

Anticipated timetable of key events in relation to the Retail Entitlement Offer (Source: Company Reports)

Overview of Freedom Foods Group Limited

With the increasing demand for UHT dairy products in Australia, SE Asia and China, the Company’s UHT Dairy operations are growing above plan. In order to provide for increased demand above plan, the company has also increased the size of its dairy milk pool to more than 400 million litres in FY 2020. Increased dairy milk is providing an opportunity to expand Nutritionals capability to further increase sales and earnings and further, the growth in the demand in certain segments like dairy is providing an opportunity to fast track development of a high value added nutritional platform. In the past few years, the company has invested more than 400 million in state of the art infrastructure for its products through an investment program. Besides this, the company’s newly established Nutritional ingredients capability is experiencing strong customer demand for its unique capabilities.

In the last six months, the share price of the company decreased by 2.04% as on 22 May 2019. At the time of writing, i.e., on 27 May 2019 AEST 1:00 PM, the stock of the company was trading at a price of A$4.950, up 3.125% during the day’s trade with the market capitalisation of ~A$1.18 Bn.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK