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Growthpoint Properties Australia (ASX: GOZ) has successfully raised ~$117 million through the institutional component of the right offer announced earlier this week.
In todayâs announcement to Australian Securities Exchange, Growthpoint announced the completion of institutional component of the non-underwritten accelerated non-renounceable rights offer which was priced at $3.46 per security. These capital raisings are slated to be utilized in $250 million acquisition of A-grade office asset in Queensland.
The lead manager and bookrunner to the right offer were Goldman Sachs Australia. Further, Herbert Smith Freehills acts as a legal advisor to Growthpoint.
Growthpointâs existing and new institutional investors have garnered their significant support to the Institutional Rights Offer, raising approximately $117 million. It has also been reported that the shortfall under the offer was taken up by the investors in full.
Through the market release dated 19 November 2018, Growthpoint announced its plan to raise approximately $135 million to fund support the acquisition of 100 Skyring Terrace, an A-Grade office asset in Newstead, Queensland valued at $250 million.
Subsequently, the company completed the intuitional component of the offer today and raised ~$117 million. Growthpoint announced in the offer that approximately 33.8 million securities will be issued under the Institutional Rights Offer and these securities are scheduled to be allotted on 29 November 2018.
The remaining equity raising is intended to be done through the retail offering. As per the companyâs information, eligible retail shareholders can participate to subscribe for 1 new share in Growthpoint Properties Australia for every 17.65 existing securities as on the record date of 21 November 2018. Under the Retail Rights Offer, retail securityholders have been given the option to apply for additional new shares in excess of their entitlement under an âoversubscription facilityâ.
The issue price of the retail rights offer remains the same to $3.46 per share. While the offer will close on 5 December 2018, the company will send the offer booklet to its retail securityholders on 26 November 2018.
As the company resumed trading after completing the institutional right offer, the market went bearish on Growthpointâs stock. In todayâs trade, 21 November 2018, Growthpointâs stock has witnessed a decline of 2.216% to close at $3.540. It last traded at a PE of 6.750 x with market capitalization of $2.49 billion.
Over the past 12 months Growthpointâs stock has seen a marginal improvement of 4.64% in the daily price change, however its recent 3 months performance sits at lower levels with a negative performance change of 3.99%.
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