HomeCo (ASX:HDN) eyes AU$265 million capital raising

Summary

  • HomeCo Daily Needs REIT has completed the institutional component of its entitlement offer.
  • The Institutional Entitlement Offer raised approximately AU$93 million through the issue of approximately 71.8 million new units.
  • The underwritten retail component of the Entitlement Offer will help the company to raise a further approximately AU$101.5 million.

HomeCo Daily Needs REIT (ASX:HDN) today announced that it has successful completed the institutional component  of its 1 for 2.36 underwritten accelerated non-renounceable Entitlement Offer of new units, which was announced on Monday, 19 April 2021.

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The Institutional Entitlement Offer raised approximately AU$93 million through the issue of approximately 71.8 million new units at an issue price of AU$1.295 per new unit. The existing eligible institutional unitholders offer have strongly backed the offer, taking up approximately 96.7% of their entitlements.

The institutional shortfall was heavily oversubscribed by both the new institutional investors and existing eligible institutional unitholders of the company. The new units will be entitled to the distribution for the current quarter and will rank equally in all respects with existing units from the date of allotment.

Under the Institutional Entitlement Offer, the new units are expected to be allotted on 4 May 2021 and trading is expected to commence on the ASX on the same day.

The company’s trading halt had been lifted  today and trading in its share price had been recommenced. Home Consortium (ASX:HMC), HDN’s largest unitholder, has committed to utilise its full entitlement rights (from its 26.6% investment in HDN) equating to AU$70.6 million, which will settle as part of the Retail Entitlement Offer.

Read More: HomeCo (ASX: HMC) steps up the establishment of HealthCo REIT

Retail Entitlement Offer

The underwritten retail component of the Entitlement Offer will help the company to raise a further approximately AU$101.5 million The Retail Entitlement Offer will open on Monday, 26 April 2021 and close at 5.00 PM (Sydney time) on Friday, 7 May 2021.

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Eligible retail unitholders, on the record date of 21 April 2021, 7.00 PM (Sydney time), will have the opportunity to invest in new units at the Issue Price.

The Retail Entitlement Offer Booklet outlines the terms and conditions under which eligible retail unitholders may apply. The booklet will be dispatched to eligible retail unitholders on or around 26 April 2021.

Rad More: Homeco’s Daily Needs REIT (ASX:HDN) Lands On ASX, Signs A AU$300 Deal

Other recent Entitlement offers

Few other ASX-listed companies have raised capital via Institutional and Retail offer in the last few months, making it the preferred choice among the companies. Some of them are:

Tiger Realm Coal Limited (ASX:TIG), which raised a total of AU$20.8 million in January 2021.  

Bega Cheese Limited (ASX:BGA) raised a massive AU$284 million in November last year on a 1 to 4.5 pro rata basis.

Centuria Capital Group (ASX:CNI) was another company to raise approximately AU$100 million as a part of its equity raising plan.

Read More: Bega Cheese raised a AU$284 million via institutional placement & institutional entitlement offer.

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