Ridley Corporation Expands Fertiliser Reach with $99M Capital Raise, Strengthening ASX300 Position

May 13, 2025 02:42 PM AEST | By Team Kalkine Media

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Ridley Corporation Expands Fertiliser Reach with $99M Capital Raise, Strengthening ASX300 Position — Image source: Shutterstock

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Highlights

Ridley Corporation (RIC) raises $99 million in equity funding

Acquisition of Dyno Nobel’s IPF Distribution to expand fertiliser market reach

Strong institutional participation with 99% take-up rate

Ridley Corporation (ASX:RIC), a leading player in the Australian agribusiness sector, has successfully completed a capital raise of approximately $99 million to support its strategic acquisition of IPF Distribution, a fertiliser distribution business currently owned by Dyno Nobel Limited.

The equity raise was conducted through two channels — an underwritten institutional placement and an institutional entitlement offer. Ridley issued a total of 47 million new shares at a price of $2.12 per share. The institutional placement brought in around $35 million through 17 million shares, while the institutional entitlement offer raised approximately $64 million from 30 million shares. Notably, the entitlement offer recorded a strong take-up rate of about 99%, underscoring the confidence from both existing and new institutional investors.

This funding initiative is part of Ridley’s broader strategy to strengthen its footprint in Australia’s agricultural supply chain. The $300 million acquisition of IPF Distribution is expected to significantly expand Ridley's operations into fertiliser distribution, complementing its stronghold in the animal nutrition sector.

Ridley Chairman Mick McMahon commented on the development, highlighting that the acquisition is a “unique opportunity” to integrate Australia's top fertiliser distributor into Ridley’s existing business model. He also acknowledged the robust support from institutional investors, adding that the retail component of the entitlement offer is set to be completed later this month.

As Ridley continues to grow its diversified agribusiness portfolio, its role within the ASX300 index becomes more prominent. The ASX300 includes some of the most influential companies in the Australian equity market, and Ridley’s recent strategic move further enhances its position within this benchmark index.

Investors interested in stable income-generating shares may find Ridley’s strategic expansion relevant, particularly in the context of ASX dividend stocks, where strong fundamentals and sector leadership play a critical role in long-term performance.

With a track record in animal nutrition and now a growing presence in fertiliser distribution, Ridley appears poised to evolve into a more integrated agribusiness provider, aiming to deliver scale advantages and synergies across Australia’s rural economy.

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