Fletcher Building gains as $642m equity raise nears completion
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The news: Shares in Fletcher Building advanced on the ASX after the construction materials manufacturer submitted a capital change notice, ahead of completing its NZD700 million ($642 million) equity raising.
The numbers: Fletcher shares were up 3.8% to $2.60 by 11:35am AEST, after falling around 40% since the start of the year.
The Auckland-based company said it is raising gross proceeds of NZD587 million in a completed institutional placement and NZD113 million in a retail offer, due to close on 8 October.
The equity raising, priced at NZD2.40 per share, will result in the issue of 244.8 million new Fletcher shares.
The context: Dual-listed Fletcher, which announced the equity raising last week, said the move was aimed at strengthening the company’s balance sheet and improving financial stability and resilience in the current challenging environment.
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
