South African property company Fairvest announced on Friday, 16 October, that it had closed a capital raise of 1.25 billion rands, compared with about 500 million initially sought the previous day. It attributes the increase to investor demand and says the placement was oversubscribed.
The funds are to settle outstanding balances on recent acquisitions and give the group additional means to buy commercial assets currently under negotiation. The announced allocation therefore covers both transactions already under way and future purchases.
Fairvest plans to issue 185,185,185 category B shares at a unit price of 6.75 rands. This price represents a discount of 2.7% to the volume-weighted average price over thirty days, set at 6.94 rands, according to its stock exchange statement.
Listing and trading of the new securities are expected on 23 October, subject to approval from the Johannesburg Stock Exchange.
Launched on 15 October, the transaction was an accelerated placement with investors invited by Java Capital, which was responsible for collecting offers. The initial statement said the securities issued would have the same rights as existing shares and that the amount sought could be increased or reduced.