Australian Pharmaceuticals Industries Ltd (API) has completed the institutional portion of its $150 million capital raising, after placing $88 million worth of new share with sophisticated investors.
The health and beauty retailer on Friday said it had sourced $38 million from a share placement and $50 million from a two-for-three pro-rata non-renounceable entitlement offer.
It said the institutional entitlement offer was highly successful with 99 per cent of entitlements taken up while the bookbuild for the placement was significantly oversubscribed.
Washington H Soul Pattinson & Co Ltd, API's largest shareholder with around 25 per cent, took up its pro-rata share of the entitlement offer and placement, as expected.
"We are very pleased with the strong support we have received from existing institutional shareholders and new investors for this equity raising, which will significantly strengthen the company's balance sheet and provide financial flexibility for future growth," managing director and chief executive Stephen Roche said in a statement.
The retail component of the entitlement offer, which opens on Friday October 30, is expected to raise $62 million, taking the size of API's total raising to $150 million.
The new shares are priced at 65 cents each, a discount API's trading price of $1.05 on Tuesday before it announced the raising.
© 2009 AAP
