Fertiliser manufacturer Nufarm has successfully raised $238 million to help firm up its balance sheet and continue its growth plan as the ongoing drought cuts into its bottom line.
Nufarm last week said it would aim to raise up to $303 million via an entitlement offer, after it announced the drought-stricken Australian farming market had driven it to a $15.1 million loss in FY18.
Nufarm managing director Greg Hunt said the capital-raising, which covered more than two-thirds of that target, was a sign shareholders “strongly supported” the program.
“[The equity raising] helps ensure Nufarm remains in a strong position to manage short term balance sheet risk, and supports the continuation of the company’s growth strategy in light of recent market uncertainty,” Hunt said on October 1.
“There was strong demand for shortfall shares in the Institutional Shortfall Bookbuild from both existing shareholders and new investors, and we are pleased that institutional shareholders who did not participate will receive a premium of A$0.50 for their renounced entitlements.”
Nufarm will look to raise the rest of its target via the Retail Entitlement Offer stage, which will open on October 4.