Bellamy’s said on Tuesday that 79 per cent of the allocation went to retail investors which equated to $37.9 million, underwriters picked up the remaining 21 per cent which equated to $7.8 million.
Dairy company Bellamy’s is six months into an 18-month turnaround strategy. Photo: Kate Geraghty
The shares were offered to retail investors, at a price of $4.75 per new share.
Shares in Bellamy’s closed on Tuesday up 2¢ to $6.84, meaning that shareholders who took up the offer increased their shareholding at a significant discount to the current price for the stock. Investors will be watching Bellamy’s closely next week, with the new shares expected to commence trading on ASX on Monday, July 10.
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The earlier institutional component of the capital raising raised about $14.3 million. The money raised by the Tasmanian-based company will be used to buy an indirect 90 per cent interest in Camperdown Powder, which owns a canning facility in suburban Melbourne, for $28.5 million.
The other major use for proceeds from the capital raising will be a payment of $27.5 million to dairy processor Fonterra, to overhaul Bellamy’s supply contract with the dairy processor.
By Darren Gray
Article Source – smh.com.au