Another company looking to tap the market for equity is property investor Valad Property Group
(ASX:VPG) who today announced an equity raising to raise $59.5 million before costs.
The group says the estimated net proceeds of $56.5 million will be used to settle the Scarborough Vendors Group deferred liability of 29.5 million pounds.
The equity raising is fully underwritten at an issue price of 10 cents a share which represents a 37.5 per cent discount to Valad’s closing price of 16 cents per stapled security yesterday.
The raising is made up of a $40.2 million entitlement offer and an institutional placement to raise $19.3 million.
Managing director Peter Hurley says in the recent past the company has received feedback from a number of its existing investors indicating that they would be prepared to support raising equity in order to pay down liabilities such as the contracted payment to the Scarborough Vendors Group.
Valad Property Group posted a $248 million loss in 2008.
