HMC Capital shares rise on completed $100m placement
Make us a preferred source
Make us a preferred source on Google
The news: HMC Capital gained on the ASX after completing a $100 million institutional placement to fund the acquisition of commercial real estate (CRE) fund manager Payton Capital.
The numbers: The ASX‑listed alternative asset manager issued around 15.4 million new shares to institutional investors at a price of $6.50 per share.
Shares were up 7.2% to $7.42 at 1:00pm AEST.
Last week, the Sydney-based investor announced the acquisition of Payton for an upfront consideration of $127.5 million, as part of its strategy to establish a $5 billion private credit platform. The takeover of Payton, which holds $1.5 billion in assets under management, will also be funded by a share purchase plan to raise a further $30 million.
The context: HMC said the placement attracted strong demand from existing institutional shareholders and new institutional investors. The new shares under the placement are expected to settle on Wednesday with allotment and normal trading of the shares to occur on Thursday.
Earlier this month, HMC shares surged on the ASX after the asset manager said its operating earnings per share for the 2024 financial year was tracking 21% higher than previously guided, and unveiled former prime minister Julia Gillard as an executive on its energy transition fund.
The source: ASX announcement
