Agribusiness services company AWB Ltd
(ASX:AWB) has completed the retail component of its entitlement offer, raising around $241 million.
This follows the completion of the institutional placement and the institutional component of the entitlement offer, which together raised $218 million from institutional investors.
Under the terms of the retail entitlement offer, eligible shareholders were invited to apply for new shares in excess of their entitlement.
The company says that in the interests of fairness to all shareholders the company will scale back these applications.
AWB says following this scale back, it will accept applications for approximately $135 million under the retail entitlement offer, including applications for entitlements of approximately $88 million and applications for new shares in excess of entitlements of around $47 million.
Managing director Gordon Davis says the proceeds will be used to strengthen the company’s balance sheet and to provide financial flexibility through the subsequent reduction in net debt.
AWB recorded net profit of $64.28 million in 2008.
