AuMake scraps cap raising

THE market value of retailer AuMake has fallen-heavily after it scrapped plans to tap investors for $20 million, citing share price volatility.

AuMake, which sells Australian goods to Chinese tourists and so-called daigou for export, said it had cancelled the capital raising program after underwriter Prenzler Group pulled out.

“The company considers this action reasonable given recent share price volatility,” AuMake said in a statement.

AuMake said that as a result, it would refund all application money received, withdraw its entitlement offer and its shortfall offer. It is instead raising $14 million, by selling new shares priced at 45¢ each.

Shares in AuMake tumbled 12.3 per cent yesterday to 46.5¢ on the revelation. AuMake sells Australian cosmetics, vitamins and other products to shoppers for export to China.