Nufarm Limited Completes The Final Lap Of $303 Million Capital Raising

  • Oct 23, 2018 AEDT
  • Team Kalkine
Nufarm Limited Completes The Final Lap Of $303 Million Capital Raising

Nufarm Limited (ASX: NUF) today completed the retail shortfall bookbuild for 6.2 million retail entitlements not taken up in the retail offer. With the completion of Retail Shortfall Bookbuild at an offer price of $5.85, the company has touched the finishing line to its capital raising plans announced on 26 September 2018. At this stage Nufarm has successfully raised total of approximately $303 million capital through the issue of 3 new Nufarm shares for every 19 existing shares under fully underwritten entitlement offer. The issue price was fixed at $5.85.   The remaining entitlements of retail component were offered after the market close on Monday, 22 October 2018. At the close of initial retail offering the company has received approximately $31 million in applications, representing a participation rate of around 46%. Whereas, in the retail shortfall bookbuild approximately 6.2 million retail entitlements were offered which were allocated completely to sub-underwriters at a price same as entitlement offer price of A$5.85. The issuance of new shares under the Retail Entitlement Offer and the Retail Shortfall Bookbuild is reported to be made on 26 October 2018 while these new shares will start trading on ASX from 29 October 2018. On the institutional component front, Nufarm has successfully raised approximately $238 million from institutional investors, representing take up rate of approximately 90%. The institutional component of the $303 million entitlement offer was completed in the first week of October at the offer price of $5.85 per new share. However, in the institutional shortfall bookbuild the company has offered premium of $0.050 on offer price to clear bookbuild at $6.35 per new share. Nufarm’s plan to raise capital through fresh issue is driven by the higher level of debts and risk hovering around the revenue growth ahead of drought conditions in Australia. Nufarm’s sales of crop and seed protection products has been struggling all through the prevailing drought conditions in Australia as farmers have no crops to apply the Nufarm’s crop protection products. In the September release Nufarm Managing Director and CEO Greg Hunt stated that capital raising is essential for the company considering the increased level of debts and uncertainty in market conditions. In FY18, Nufarm’s full-year results were negatively impacted by severe drought in Australia. Its EBITDA declined 1% despite 6% growth in group’s revenue. However, going forward the company plans to manufacture capacity expansions in both North and South America. The strategic acquisitions of valuable products also form part of company’s future growth plans. Ahead of completing $303 million capital raising, Nufarm’s share price surged 1.239% or $0.070 to close at $5.720 on 23 October 2018. However, the stock has seen a negative performance change of -32.49% over the past one year.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from 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.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
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