- HomeCo Daily Needs REIT (HDN) has completed the institutional component of its one-for-2.36 entitlement offer
- The real estate investment trust raised $93 million through the issue of around 71.8 million new units, priced at $1.25 each
- Institutional shareholders showed strong support for the oversubscribed offer, taking up around 96.7 per cent of their entitlements
- In fact, the company’s largest 26.6 per cent unitholder, Home Consortium (HMC), has committed to take up its full $70.6 million entitlement, to be settled as part of an upcoming retail entitlement offer
- The underwritten retail component, set to open on April 26, is slated to raise around a further $101.5 million
- HomeCo shares are trading flat at $1:30 each
HomeCo Daily Needs REIT (HDN) has completed the institutional component of its one-for-2.36 entitlement offer.
The real estate investment trust announced its underwritten accelerated non-renounceable entitlement offer earlier this month.
The company has now raised $93 million through the issue of around 71.8 million new units, priced at $1.25 each, with strong support from institutional shareholders who took up around 96.7 per cent of their entitlements.
HomeCo says the institutional shortfall was strongly over-subscribed by eligible existing institutional unit holders and new institutional investors.
The new units will be entitled to distribution for the quarter ending June 30.
Further, HDN expects to allot new units on May 4, with trading on a normal settlement basis to commence on the ASX the same day.
Notably, the company’s largest 26.6 per cent unitholder, Home Consortium (HMC), committed to take up its full entitlement, equating to $70.6 million, to be settled under the company’s retail entitlement offer.
Retail entitlement offer
Still to come, the underwritten retail component is set to open on April 26 and is slated to raise around a further $101.5 million.
It will give eligible retail unitholders the opportunity to invest in new units at the issue price on the April 21 record date.
On the market today, HomeCo shares are in the grey, trading at $1.30 at 4:53 pm AEST.