Scott Technology seeks $9.5m in rights issue

Scott Technology is seeking to raise $9.5 million through a one for four rights issue of new shares.

The offer will be open to New Zealand shareholders, at an application price of $1.20 per new share, a 17 percent discount of the $1.45 closing price on Friday, the company said today.

A designer and manufacturer of automated production and process machinery, Scott Technology said it intended to use the funds to ensure it was well capitalised to take advantage of growth and acquisition opportunities.

The offer, which will open on July 6 and close on July 28, is not underwritten.

Forsyth Barr was the lead manager and organising participant, Scott Technology said.

Shareholders who did not wish to participate in the offer could sell their rights, which would be tradable on the NZX.

Shareholders who accepted their entitlement in full could apply for additional new shares at $1.20 per share through an oversubscription facility, subject to scaling rules.

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