LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

Boral Shares Underwater After Cap Raising
BY GLENN DYER - 25/11/2016 | VIEW MORE ARTICLES BY GLENN DYER

Get More Commentary, Discussion & Market Information On -

BLD - BORAL LIMITED.


As expected shares in Boral (BLD) fell yesterday after the building materials group resumed trading following completion of an institutional capital raising to help fund the $A3.6 billion purchase of Utah based, Headwaters.

The takeover, which will boost the company’s size by more than two thirds, will be funded by the share issue, as well as borrowing and Boral’s existing cash.

The shares plunged nearly 20% at one stage in the wake of the issue to the big end of the market, and then the successful auction of an unsold 20 million shares.

Boral shares fell 18.8% to $4.99 on high volumes of about 81.1 million shares, or more than 15 times the daily average having traded.

Boral said its institutional placement and institutional entitlement offer raised about $1.6 billion, with the placement greatly oversubscribed and the entitlement offer strongly supported with a 91% take-up.

Fund managers paid $5.25 a share for about those 20 million shares left over from the institutional component of the $1.6 billion rights issue.

Boral’s brokers closed an auction for 20 million shares at midday on Wednesday, and they cleared at $5.25 each, according to market sources. It means renouncing institutional shareholders - those that did not take up the right to buy new shares under the entitlement offer - will receive 45 cents for each right renounced.

So far no sign of any move to call a meeting of shareholders to discuss this transforming move.


View More Articles By Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.



 

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +

SHARECAFE VIDEO


View More Videos   

RECENTLY ADDED TO SHARECAFE


 › Friday At The Close
 › Austin Rides Unexpected Mining Recovery To Better Outlook
 › Kohler's Overview - Australian Economy
 › New Year (Investment) Resolutions
 › 2017: So Much Uncertainty, So Many Opportunities
 › Major Milestone For West African Resources
 › Market At Midday On Friday
 › Warning: There Might Be Bank Pain Ahead
 › Another Way To Use The Options Market
 › S32 - Credit Suisse rates the stock as Neutral
 › WPL - Macquarie rates the stock as Neutral
 › CSL - Morgans rates the stock as Add
 › Next Week At A Glance
 › Overnight: Downward Drift
More ShareCafe