The trading halt on the AMA Group, issued on the 6th of September, has been lifted today after the group announced a capital raising of $150 million.
The capital raising consists of two offers: an entitlement offer where shareholders receive a share for every 2.80 they own, raising $100m; plus a fully underwritten convertible notes offer that will raise $50m. The convertible notes offer will become due in six years in 2027.
Around half of the raising will be used to repay debt, while the rest is set aside to assist in the planned growth.
According to the share dealing website The Motley Fool, The Institutional Entitlement Offer, announced on Friday, raised $53 million at an offer price of 37.5 cents per share. That’s a 13% discount to the current AMA Group share price of 43 cents. Those 142 million shares are expected to be issued and commence trading on 21 September.
The underwritten retail entitlement offer is expected to raise $47 million. The offer opens this Friday, 17 September and closes on 30 September.
To participate, investors will need to hold shares by the end of the day tomorrow, 14 September. They’ll be entitled to 1 new share for every 2.8 shares they hold priced at the same 37.5 cents per share.
Topping off the new inflows of capital, the company said it had also successfully priced $50 million of notes. Unless the notes are converted, repurchased or redeemed, they mature on 22 March 2027 at a coupon of 4.0% per year. The notes are convertible to shares at an initial conversion price of 46.88 cents per share.
Commenting on the capital raising, AMA Group CEO Carl Bizon said: "Throughout the Institutional Entitlement Offer and Convertible Notes Offer processes, we were very pleased by the level of support by investors, both for the capital raising, and for our business. It is extremely encouraging to see the level of belief in our business and strategy.
We look forward to the future, as the impacts of COVID-19 related restrictions begin to lift and we can turn our focus to the execution of our strategy as we seek to unlock the value inherent in the AMA Group."