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Whitefield (ASX:WHF) launches institutional placement

The Market Online Deal Room
ASX:WHF      MCAP $601.4M
14 July 2021 14:00 (AEST)
Whitefield (ASX:WHF) - Chairman and Managing Director, Angus Gluskie

Source: Whitefield

Whitefield (WHF) has announced it will launch an institutional placement as part of its investment strategy.

The finance stock entered a trading halt this morning which hinted at a capital raise. Soon after, all the details were announced apart from how much will be raised.

Whitefield will issue up to 14.4 million shares to wholesale investors at $5.56 per share. The issue price represents the estimated pre-deferred tax net asset backing of the company on July 13. It also marks an 11 per cent discount to the five-day volume-weighted average price.

The new shares are expected to be issued on July 23 and begin trading on July 26.

Chairman and Managing Director Angus Gluskie was pleased with the demand for the placement.

“A growing number of investors have appreciated the consistency and reliability of Whitefield’s dividend stream and the structural efficiency of our quantitative investment framework which has provided investors with both risk control and return delivery over an extended time frame,” Mr Gluskie said.

“It is important that we increase the volume of shares on issue at this time to achieve an enhanced level of liquidity for new and existing investors.”

Whitefield will use the money raised to invest in a diversified portfolio of ASX-listed equities, cash or cash equivalent.

The investment company also expects to launch a share purchase plan which will be announced once the placement is completed.

Whitefield will remain in the trading halt until Friday, July 16 at the latest.

Company shares last traded at $6.23 on July 13.

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