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Key Points:
- Fletcher Building raised NZ$700 million, with NZ$587 million from institutional investors and NZ$113 million from retail shareholders.
- Retail investors showed strong support, subscribing for NZ$83 million in new shares, with a 73% take-up rate among eligible shareholders.
- The new shares will begin trading on the NZX Main Board and ASX on 15 October 2024, and will rank equally with existing shares.
Fletcher Building Limited (ASX:FBU) has successfully concluded the retail entitlement offer component of its NZ$418 million underwritten 1 for 4.49 pro-rata accelerated non-renounceable entitlement offer. This marks a significant step in the company’s broader capital-raising strategy, which aims to strengthen its financial position and support ongoing operations.
In total, Fletcher Building has raised NZ$700 million through the combination of the retail entitlement offer, an institutional entitlement offer, and a placement announced on September 23, 2024. Specifically, the company secured NZ$587 million in gross proceeds from institutional investors and the placement, and an additional NZ$113 million from retail investors through the retail entitlement offer.
The retail component saw strong participation from Fletcher Building’s eligible retail shareholders, who demonstrated confidence in the company’s future prospects. Retail investors subscribed for NZ$83 million worth of new fully paid ordinary shares, surpassing the initial target, including approximately NZ$20 million in oversubscriptions. This level of engagement reflects a 73% take-up rate by eligible retail shareholders, showing a solid interest in maintaining or increasing their stake in the company.
Importantly, those shareholders who fully took up their entitlements and applied for more shares than they were initially allocated received all of the new shares they requested. This allowed them to maintain their proportional shareholding in the company following the placement and entitlement offer.
Approximately 13 million new shares that were not taken up in the retail entitlement offer have been allocated to the underwriter or sub-underwriters procured by the underwriter, ensuring that the full target for the offer was reached. These newly issued shares are expected to begin trading on both the NZX Main Board and the ASX on Tuesday, October 15, 2024. The new shares will rank equally with the existing fully paid ordinary shares of Fletcher Building, meaning they will carry the same rights and privileges as the company's existing shares.
The successful completion of this retail entitlement offer and the wider capital raising initiative will provide Fletcher Building with the financial flexibility to strengthen its balance sheet and pursue key growth initiatives. The company has not only demonstrated its ability to attract institutional and retail investor support but also its commitment to maintaining a strong shareholder base. Fletcher Building’s leadership will now be able to focus on its strategic goals, including continued investment in infrastructure, building products, and construction services across the regions it operates in.
