DNZ Property sells $60m of shares to institutions at 1.8% discount
The bookbuild process set the price at $1.68 a share, a small discount to the last trading price at $1.71 before the shares were halted.
DNZ Property Fund, which reported a 14 percent decline in annual distributable earnings yesterday, completed its $60 million placement to institutional investors at a 1.8 percent discount.
The bookbuild process set the price at $1.68 a share yesterday, a small discount to the last trading price at $1.71 before the shares were halted.
The placement will be followed by a $20 million share purchase plan next month priced at the lower of $1.6575 and the average end-of-day price over the 10 working days during the offer, the Auckland-based company says in a statement.
The $80 million raised will go towards two acquisitions in Auckland, as the property investor looks to re-weight its portfolio in the North Island, with a particular focus in the country's biggest city.
"Interest from our existing shareholders and new investors has shown strong support of DNZ's business strategy, portfolio strength and the recent retail sector acquisitions," chairman Tim Storey says.
Because one of the acquisitions will immediately add to DNZ's earnings, the placement and share purchase plan are not expected to dilute returns, and the company forecasts an annual 9 cents per share dividend in 2014.
The shares slipped 0.6 percent to $1.70 when they resumed trading today, and have gained 7.9 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters, with a median target price of $1.78.
(BusinessDesk)
Paul McBeth
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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DNZ Property sells $60m of shares to institutions at 1.8% discount
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