NZRL still inviting more capital

New Zealand Rural Land Company’s capital raise has finished undersubscribed and it has opened it up to more investors to help make up the balance.

Earlier this month, the NZX-listed company announced it had entered in agreements to buy two more farms in Southland and was undertaking a $20 million capital raise to help fund that.

Following that announcement, it raised a little more than $11 million through an institutional offer.

The company then opened a retail offer to eligible shareholders.

In a statement to the market yesterday, NZRL said that offer had been completed, raising $2.6 million, as shareholders only took up about 30% of their entitlements.

The company opened a bookbuild offer to raise the remaining $6.3 million which was open to existing shareholders who did not take up their full entitlements or retail shareholders who were ineligible to participate.

The offer, which was conducted yesterday, was also open to institutional investors and to brokers who were acting on behalf of retail investors.

NZRL’s shares were placed into trading halt while the offer took place.

Trading was expected to recommence at today’s market open with an announcement advising of the outcome of the bookbuild offer.

Settlement of the retail shares was expected to occur tomorrow.

The first of two Southland transactions settled on June 15.

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