Myer (MYR) shareholders have given a conclusive thumbs down to the retailer’s share issue, and presumably the $600 million revamp plan by saying they do not want to finance it.
The department store chain revealed late yesterday that the retail part of Myer’s capital raising had fallen well short, with small shareholders taking up just $3.7 million worth of shares in a issue aimed at raising $121 million.
The total issue raised $221 million, so big shareholders stumped up $217.3 million.
The retailer said it raised the full amount thanks to over subscriptions by big shareholders.
The offer was announced on September 1 at a price of 94 cents a share and was almost immediately under pressure when Myer’s share price fell to 90 cents two days later. The shares ended at 86 cents yesterday.
The offer closed on Thursday and Myer said late on Monday in the announcement, that that shareholders had bought only about four million new shares, which is a derisory number.
Many small shareholders have lost money in Myer since it floated at $4.10 a share.
MYR 1Y – Myer raises just $3.7 million from retail investors
