- Infant nutrition and dairy specialist Bubs Australia (BUB) has raised $40.1 million through the institutional component of its capital raising
- The company says its $63 million capital raise will help to support growth strategies and execute long-term goals
- The $40.1 million component is made up of a $32.4 million placement and one for 10.42 pro-rata accelerated non-renounceable entitlement offer that raised $7.7 million
- The remaining $22.9 million will be raised via a retail entitlement offer under the same terms as the institutional offer
- Bubs is down 3.17 per cent on the market with shares trading at 61 cents 3:37 pm AEST
Infant nutrition and dairy specialist Bubs Australia (BUB) has raised $40.1 million through the institutional component of its capital raise.
The company’s $63 million capital raise was announced yesterday and aims to support its growth strategies and execute long-term goals.
The money was raised via a $32.4 million institutional placement and $7.7 million institutional entitlement offer.
Under the placement, roughly 62.4 million new shares were issued to institutional investors at a price of 52 cents.
This price was an 18.8 per cent discount to Bubs’ closing price on July 4 of 64 cents and a 16.2 per cent discount to the theoretical ex-rights price of 62 cents.
The $7.7 million was raised via a one-for-10.42 pro-rata accelerated non-renounceable entitlement offer with shares priced the same as the placement of 52 cents.
The remaining $22.9 million will be raised via a retail entitlement offer under the same terms as the institutional offer.
It is underwritten by Citigroup Global Markets Australia and Bell Potter Securities and will open on July 12 and close on July 26.
“As the business continues its rapid growth and expansion with the new capital, we look forward to keeping our new and existing investors informed and making the business stronger and better,” Founder and CEO Kristy Carr said.
Bubs was down 3.17 per cent on the market with shares trading at 61 cents at 3:37 pm AEST.