- A retail entitlement offer from internet provider Superloop (SLC) closes short of its target, with only 30 per cent of eligible shareholders subscribing
- SLC announced plans to raise $100 million in extra cash in early June via a $51 million entitlement offer and $49 million placement
- The institutional component of the entitlement offer raised close to $20 million, but the retail offer only received $6.3 million in applications
- SLC says the remaining $14.9 million worth of shares have been taken up by the sub-underwriters, while all money raised will go towards the Exetel acquisition
- Superloop shares are trading down 0.27 per cent at 93.8 cents each
A retail entitlement offer from internet provider Superloop (SLC) has closed short of its target, with only 30 per cent of eligible shareholders subscribing.
Superloop first announced plans to raise $100 million in extra cash in early June.
It said it would raise the funds via a $51 million entitlement offer and $49 million placement.
The institutional component of the entitlement offer as well as the placement closed last month, with each offer raising $20 million and $49 million respectively.
The retail component of the entitlement offer then closed on Tuesday, but only $6.3 million worth of applications were received from shareholders.
That represents a take-up rate of just 30 per cent and has left $14.9 million worth of shortfall shares for the sub-underwriters.
Superloop said it still plans to spend all of the money raised from the capital raise to help it purchase fellow internet service provider Exetel.
SLC has agreed to pay $110 million in consideration for the business, including $100 million in cash and $10 million worth of SLC shares.
All of the shares from SLC’s fundraise should be issued by next week, while the company anticipates the acquisition being finalised by the end of the month.
Company shares were trading down 0.27 per cent at 93.8 cents per share at 12:54 pm AEST.