- Health club Viva Leisure (VVA) has successfully completed the retail component of its non-renounceable entitlement offer
- The company offered fully paid ordinary shares in Viva Leisure at $2.20 a share, raising approximately $3.5 million
- Viva Leisure’s retail entitlement offer enjoyed strong support, with 439 valid applications received from participants
- The company expects to issue approximately 1.6 million new shares from the offer on June 30, 2020
- Viva Leisure shares are up 2.86 per cent today, trading for just over $2.50 each
Health club, Viva Leisure (VVA) has successfully completed the retail component of its non-renounceable entitlement offer.
The company first announced the one-for-six accelerated pro-rata non-renounceable entitlement offer on June 4, 2020. The retail component of the offer closed on June 23, after enjoying strong support from participants.
The retail entitlement offer received 439 valid applications for approximately 900,000 new shares, equating to roughly $2 million. This was a take-up rate by eligible retail shareholders of approximately 57 per cent.
The retail shortfall facility accepted application worth approximately $500,000, which increased the total take-up to $2.5 million. This represented a total take-up rate of 71 per cent.
Viva Leisure sold fully paid ordinary shares in the company at $2.20 a share, raising approximately $3.5 million. This, added to the amount raised under the placement to sophisticated and institutional investment, produced a total of approximately $25 million.
Viva Leisure’s Managing Director and CEO, Harry Konstantinou, was pleased with the response from shareholders who participated in the offers.
“Investor feedback was overwhelmingly supportive of our strategy and their backing will allow Viva Leisure to capitalise on opportunities as they arise. The success of the equity-raising is a clear endorsement of Viva Leisure’s long-term strategy,” Harry said.
“It will strengthen our balance sheet and liquidity position, increase our financial flexibility, and ensure that we can pursue accretive and strategic future acquisition opportunities, accelerate refurbishment of existing locations, and accelerate new site roll-outs,” he continued.
Approximately 500,000 shares were not taken up under the retail entitlement offer. Those will be allotted to sub-underwriters of the offer, as a result.
Viva Leisure expects to issue approximately 1.6 million new shares from the offer on June 30, 2020. Those new shares should begin trading on the ASX, on a normal settlement basis, on the following day, July 1, 2020.
Viva Leisure shares are up 2.86 per cent today, trading for just over $2.50 each at 1:02 pm AEST.