Generation Development Group shares surge on capital raise
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More news: Generation Development Group (GDG) shares rocketed in morning trade after the investment company completed the institutional component of an equity raise to part-fund its $320 million acquisition of Evidentia Group.
GDG shares were up 6.7% to $4.96 by 11am AEDT, extending gains of more than 170% over the last 12 months.
Generation Development Group raises $233m
The news: Investment company Generation Development Group (GDG) has completed the institutional component of its equity raising to support the $320 million acquisition of Evidentia Group.
The numbers:The company has raised $233.3 million of its $287.9 million target.
GDG said the institutional placement attracted "strong interest, significantly in excess of available shares", raising its target of $114.4 million.
However, the institutional entitlement offer only received a take up of 68% by eligible institutional shareholders, raising $118.9 million compared to a target of $173.5 million.
Institutional entitlements that were not taken up that would otherwise have been offered to ineligible institutional shareholders, were available for sale through an institutional shortfall bookbuild at the offer price from 10 February to 11 February 2025.
GDG has also planned for a retail entitlement offer on Friday which also includes a top-up facility.
The context: GDG announced on Monday that it has agreed to buy investment manager Evidentia and will part-fund the deal through an equity raising.
In addition to the institutional component, GDG aims to raise $75.1 million through a placement to eligible Evidentia shareholders.
The source: ASX announcement
