Fletcher Building shares tumble on completed discounted equity raise
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More news: Shares in Fletcher Building rose in morning trade after the building materials manufacturer completed its NZ$700 million ($642 million) equity raising.
Fletcher shares were down 1.8% to $2.76 by 11:35am AEDT, despite notching gains after previous announcements related to the raise.
The raise was at a fixed price of NZ$2.40 per new share, representing a 17% discount to Fletcher’s closing price of NZ$2.89 on Friday.
Fletcher Building completes $642m equity raise
The news: Construction materials manufacturer Fletcher Building has completed its NZD700 million ($642 million) equity raising after closing a NZD113 million retail offer.
The numbers: The Auckland-based company, which announced the raising last month, said it received "strong support" from eligible shareholders for the retail offer, which an effective take up rate of around 73%.
Retail shareholders subscribed for NZD83 million of new Fletcher shares, including around NZD20 million of oversubscriptions.
The context: Dual-listed Fletcher said the new shares issued under the retail offer are expected to commence trading on the NZX and ASZ on 15 October and will rank equally with existing Fletcher shares.
The raise was aimed at strengthening the company’s balance sheet and improving its financial stability and resilience.
Last month, the group reported a swing to a full-year loss in FY24 as volumes dropped amid slowing demand and competitive pressures.
The source: ASX announcement
