St Barbara Flags Stage 1 Institutional Placement; Raised $355 Million

  • May 17, 2019 AEST
  • Team Kalkine
St Barbara Flags Stage 1 Institutional Placement; Raised $355 Million

St Barbara Limited (ASX: SBM) announced on 17th May 2019 that the company successfully completed the previously intended Institutional Placement, which took place between 15th May 2019 to 16th May 2019. The company raised the capital from the placement for its recent acquisition of Atlantic Gold’s Moose River prospect.

SBM completed the placement of 3.1 pro-rata accelerated offer, which represents non-renounceable entitlement of 1 fully paid ordinary new share (post the acquisition) in the company at an offer price of A$2.89 per share for three existing fully paid ordinary share (before the acquisition) at AEST 7:00 PM on the record date (17 May 2019).

The decided offer rate of A$2.89 a share led towards a raised capital of $355 million for the company, and as per SBM, the existing eligible institutional shareholders supported the placement.

The subscription of existing eligible institutional shareholders reached approx. 81% of the new shares and the eligible institutional holders did not take the bookbuild of the institutional entitlement. Also, the company had previously decided that any shortfall arriving out of non-subscription by the qualified institutional would be provided to the qualified investors, in case they apply over their entitlement. If the qualified investors do not take up the institutional entitlements, then it would be provided to ineligible institutional holders.

However, as per the company, the subscription was significantly oversubscribed by both the existing institutional investors and the new ones.

Out of initially intended $490 million, St Barbara has raised $355 million out of the institutional placement, which in turn, marks the completion of the first stage of capital raising for the proposed acquisition of Moose River prospect.

Further, the company is expecting the purchase of new shares under the Institutional Entitlement Offer to settle on 24th May 2019, and the issue and normal trading of the shares would commence from 27th May 2019. SBM would rank the new shares in equal terms with the existing shares of the company.

The second stage of fundraising, i.e., Retail Entitlement Offer, would commence from 21st May 2019 and mark the ending on AEST 5:00 PM on 4th June 2019.

The list of past and future events date-wise is as follows:

St Barbara Flags Stage 1 Institutional Placement; Raised $355 MillionSource: Company’s Report

The company would open the subscription for eligible shareholders, and the eligibility for the subscription is as follows:

  • The shareholders should have held the company’s share as on record date, i.e., 17th May 2019.
  • Also, the shareholders should have a registered address in Australia or New Zealand.

The Retail entitlement would provide one new share of the company (post-acquisition) for every three existing shares of the company (before acquisition) at the same offer price of A$2.89 per share. Also, SBM would release the Retail Offer Booklet on 21st May 2019 and it mentioned that the retail entitlement would be non-renounceable and would not mark trading of entitlements.

The eligible retail shareholders could apply for additional entitlement up to a maximum of 25%, and any shortfall in the retail subscription would be provided to the eligible shareholder, who apply on an excess of their entitlement. However, St Barbara mentioned that it could not guarantee that the applicants would receive all or any additional new shares.

The shares of the company, by the end of the trading session, was at A$2.895 on a XE status (as on 17 May 2019) on ASX before the record date.


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