City Chic shares halve as institutional raise misses target
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The news: City Chic Collective's share price more than halved on the ASX after the plus-size fashion retailer failed to raise a target $15.4 million through the institutional component of a $23 million equity raise.
The numbers: City Chic shares were down 57.5% to $0.13 by 12:25pm AEST.
The company confirmed it had completed the institutional component of its planned $23 million equity raising though a placement and entitlement offer.
The institutional component comprised of a $5.4 million placement and a $10 million entitlement offer. However, the completed entitlement offer raised a total of $9.2 million, missing the total target by $0.8 million.
The retail component of the offer, which previously targeted a $7.6 million raise, will now seek to raise $8.4 million.
New shares under the equity raising were priced at $0.15 per share, representing a 50% discount to close of $0.30 on 17 June.
The context: City Chic announced the launch of the equity raising on Friday, after agreeing to divest its US-based Avenue business to Fullbeauty Brands, as part of a broader business transformation.
The retailer said the equity raising would provide working capital, support the group's growth strategy and fund one-off restructuring costs.
The source: ASX announcement
