InvoCare (ASX:IVC) is looking to raise $150 million

Company News

by Rachael Jones

InvoCare (ASX:IVC) funeral homes is raising $150m through an underwritten institutional Placement to continue momentum achieved on its growth initiatives through the temporary restrictions on the funeral industry as a result of COVID-19.

A follow-on non-underwritten SPP will also be offered to eligible shareholders.

The placement will be priced at $10.40 per share, at a 7.8 per cent discount to its Thursday close price of $11.28.

Approximately 14.4 million new shares will be issued, representing approximately 12.3 per cent of InvoCare's existing issued capital.

The funds will be used to reduce net debt, increase liquidity and improve balance sheet flexibility to support the business.

The board has also deferred payments of its final dividend which had been due to be paid on April 17.

Shares in InvoCare (AX:IVC) are currently in a trading halt- last traded at $11.28.