- Arvida concludes NZ$155 million Placement, which was 100% subscribed with bids in excess of total amount obtained.
- The finalisation and allotment of the new shares issued as per the Placement is anticipated to take place on 21 October.
Running around 32 retirement village across New Zealand, Arvida Group Limited (NZX:ARV) has concluded NZ$155 million Placement, which was notified to the market on 15 October.
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Arvida’s Placement was 100% subscribed with bids excessive of the total Placement obtained. The final price of NZ$1.96/share symbolised a 6.9% price cut to the five days VWAP before 15 October.
Previously notified on 15 October, a NZ$175 million 100% underwritten pro rata renounceable for 1 for 6.57 rights offer component of the capital raising at NZ$1.85/share to begin on 27 October. Eligible stakeholders carrying Company’s shares at 5:00 pm on the record date of 26 October would take part in the Rights offer and the shortfall bookbuild.
On 22 October, the offer document would be released to the market. They will come with the individual Entitlement Letters being delivered to eligible stakeholders on opening up of the Rights Offer on 27 October.
The finalisation and allotment of the new shares issued as per the Placement is anticipated to take place on 21 October. The new shares issued as per the Placement would rank in the same way as the Company’s present shares.
In the CEO’s words
The Company’s Chief Executive Officer Jeremy Nicoll stated that the Placement obtained a solid assistance from present stakeholders and fresh investors from regional and foreign markets.
He further added that current stakeholders also stood a chance to take part in financing the acquisition process of 100% of the shares of Arena Living through the forthcoming rights offer.
As per the Company, its overreaching principle in distributing shares as per the Placement was fairness, with current stakeholders who took part in it were prioritised to receive a pro-rate allocation.