Downer raises $ 200 million in rights offer
ENGINEERING and infrastructure management firm Downer EDI Ltd has raised about $ 200 million from institutional investors as part of a $ 279 million capital raising.
Downer had announced the one-for-four renounceable rights offer at $ 3.25 per new share, on February 28.
Downer said t he f unds raised would strengthen the company’s balance sheet and enable it to pursue growth opportunities.
Downer, headed by chief executive Grant Fenn, said yesterday it had received strong support from institutional investors, who took up about 97 per cent of their entitlements.
An institutional bookbuild resulted in a clearing price of $ 3.75 per new share, a premium of 50 cents to the offer price.
Institutional shareholders who did not take up their entitlements and ineligible institutional shareholders will receive 50 cents for each new share not taken up.