Not a bad outcome for Mirvac – on a day when the wider market sold off, its shares only lost just over 2% in value after the property group closed its $750 million capital raising.
Mirvac said yesterday that raising was strongly supported by both existing institutional security holders and new investors, and raised $750 million through the issue of approximately 252.5 million stapled securities at the placement price of $2.97.
That was a small discount to the closing price on Tuesday of $3.10. Yesterday the securities closed down 2.9% at $3.01. Seeing the placement price was a discount of 4.2% from the previous last sale,
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz said in yesterday’s statement, “We are very pleased with the strong support shown by both existing and new institutional investors for the Placement, and we look forward to continuing to deliver long-term value for our security holders through our award-winning asset creation capability.”
New Securities issued under the Placement are expected to settle on June 3, with the allotment and normal trading to occur on 4 June 2019 from which time they will rank equally with existing Mirvac stapled securities.
Mirvac said it will be mailing details of the $75 million security purchase plan offer to security holders around June 4.
The plan will be a non-underwritten offer to provide eligible security holders with registered addresses in Australia or New Zealand on the register at 7:00pm on 28 May 2019 with the opportunity to acquire up to $15,000 of stapled securities at $2.90 per stapled security (being the Placement Price, adjusted for the June 2019 distribution of 6.3cpss).
New stapled securities issued under the SPP will rank equally with existing Mirvac stapled securities on issue but will be issued after the record date for the June 2019 distribution. They will not be entitled to the distribution for the six months to June 2019.30. Mirvac’s current intention is to cap the SPP at $75 million.
