Costa Group (ASX:CGC) completes institutional entitlement offer

Company News

by Ortenzia Borre

Costa Group Holdings (ASX:CGC) has completed its institutional entitlement offer raising $87M.

The entitlement offer was strongly supported by eligible Costa institutional shareholders, who took up approximately 88% of their entitlements.

On Monday, Costa announced an entitlement offer to raise approximately $176m. The equity raising will strengthen Costa's balance sheet and ensure that Costa has an appropriate capital structure in place to support the continuation of the company's growth strategy in light of the recent trading and market uncertainty.

The retail component of the entitlement offer is expected to raise approximately $90m and will open at 9.00am on 6 November 2019.

Despite the news, shares in Costa Group plunged 26.3 per cent when trading commenced as investors were finally able to respond to the company's discounted capital raising.

Shares in Costa Group are trading at $2.67.