Join our daily newsletter At The Bell to receive exclusive market insights
- Home appliance company Breville (BRG) has raised $94 million after completing an institutional placement of 5.5 million new shares
- Proceeds will go towards enhancing their financial flexibility and enable Breville to continue to invest in its growth strategy and maintain a strong financial position
- The capital raise coincides with a market update from the company, which showed constant currency revenues were up in March and April despite the poorly performing economy
- Company CEO Jim Clayton said the success of the placement is a ‘clear endorsement’ of the business and long term growth strategy which is focussing on product development and international expansion
- Breville ended the day 6.6 per cent higher with their shares selling for $19.95 each
Home appliance company Breville (BRG) has raised $94 million after completing an institutional placement of 5.5 million new shares.
It’s the first time the company has entered into a capital raise. Additionally, it’ll also look to secure a further $10 million through a share purchase plan for eligible shareholders from next week.
Proceeds from the raise will go towards enhancing the companies financial flexibility and enable Breville to continue to invest in its growth strategy and maintain a strong financial position.
The announcement coincided with a market update from the company, which showed constant currency revenues were up in March and April despite the poorly performing economy.
The new shares were priced at $17, which was a 9.1 per cent discount when Breville’s share priced closed at $18.70 just before they entered a trading halt on Tuesday.
“We are very pleased with the demonstration of support shown by our shareholders and other institutional investors for the placement. We see the success of the placement as a clear endorsement of Breville’s strong and resilient business and our long-term growth strategy, focusing on product development and international expansion.”
Chief Executive Officer, Jim Clayton
Following the announcement, Breville ended the day 6.6 per cent higher with their shares selling for $19.95 each.
