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- New Zealand financial services specialist Heartland Group (HGH) successfully taps investors for NZ$68.8 million (A$62 million) through a share purchase plan (SPP)
- While this falls slightly short of the company’s target of NZ$70 million, it comes alongside a NZ$130 million share placement, which was fully subscribed
- The company will use the bulk of its cash boost to repay a A$158 million acquisition finance facility relating to its recent purchase of StockCo Australia
- The company says it will use some of the funds to provide extra growth capital for its existing businesses in Australia and New Zealand
- Shares in Heartland Group last traded at $1.56 on Monday, September 5
New Zealand financial services specialist Heartland Group (HGH) has successfully tapped investors for NZ$68.8 million (A$62 million) through a share purchase plan (SPP).
The final result falls marginally short of the company’s target of NZ$70 million, though it was launched in tandem with a NZ$130 million share placement, which was fully subscribed.
Under the terms of the SPP, Heartland will now issue just under 39 million new shares at roughly NZ$1.77 per share to raise the funds. This price marks a 2.5 per cent discount on Heartland’s five-day volume-weighted average price leading up to the closing date of the purchase plan.
The SPP, along with the major placement, were announced by Heartland in August, with the funds to go towards a A$158 million repayment of an acquisition finance facility relating to Heartland’s recent purchase of StockCo Australia.
The company said it would also use some of the funds to provide extra growth capital for its existing businesses in Australia and New Zealand.
The capital raise came on the back of a record net profit result of $95.1 million for Heartland over the 2022 financial year — an increase of 9.3 per cent, or $8.1 million, compared to the year before.
Heartland declared a final dividend of 5.5 cents per share, taking its full-year dividend for the 2022 financial year to 11 cents, which is equal to its 2021 financial year dividend.
Shares in Heartland Group last traded at $1.56 on Monday, September 5.
