Goodman Group shares sink after it completes $4b placement
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The news: Industrial property company Goodman Group has raised $4 billion to repay debt and invest in its logistics and data centre operations, after completing an institutional placement announced on Wednesday.
The numbers: Goodman shares were down 6.6% to $33.60 at 10:30am AEDT, having halted trading yesterday for the announcement.
The placement saw approximately 119.4 million shares sold at $33.50 each, a 6.89% discount to their closing price on Tuesday. The company will also proceed with a share purchase plan worth up to $400 million.
The context: Goodman said it received "strong support" for the placement from both existing and new institutional investors.
Group CEO Greg Goodman said the new funds will enable the company to "optimise the opportunities we're creating over the long term, particularly through our data centre offering, and provide greater financial and operational flexibility to manage the next phase of growth".
The source: ASX announcement
