The Kathmandu Holdings Ltd (ASX: KMD) share price will be on watch when its current trading halt lifts tomorrow, after the retailer failed to max-out its NZ$145 million institutional entitlement offer.
What did Kathmandu announce today?
Kathmandu announced the successful completion of its 1-for-4 fully underwritten pro-rata accelerated entitlement offer of fully-paid ordinary shares.
The company's institutional entitlement offer closed on Wednesday with the Aussie retailer announcing that eligible investors elected to take up 88% of their entitlements under the offer and 92% of eligible institutional shareholders took up their entitlements in full.
According to the update, a bookbuild for the unfulfilled entitlements will close today, and the retail entitlement offer will open this Friday.
Kathmandu shareholders will be able to subscribe to the 1-for-4 entitlement offer at A$2.37 per share up until Monday 21 October.
What else has Kathmandu announced recently?
The Kathmandu share price has rocketed 16% higher in a matter of weeks after the Aussie retailer posted a bumper full-year earnings result.
On 18 September, Kathmandu posted a net profit after tax of NZ$50.5 million (A$47.2 million) for the year ended 31 July 2019, up 32.9% on the prior corresponding period.
Company sales jumped 11.7% year-on-year to NZ$497.4 million (A$464.5 million) while operating cash flow climbed higher to NZ$75.6 million (A$70.6 million).
The record result came in-line with guidance but still boosted shareholders' hopes higher in September with the Kathmandu share price currently trading just shy of its 52-week high of $3.06 per share.
Should you buy Kathmandu shares?
The company's full-year results demonstrate that Aussie retail is far from over, with the outdoor company continuing to boost sales higher.
However, the Kathmandu share price remains down on the $3.49 per share high it hit back in May 2014, meaning it's not all smooth sailing for Kathmandu investors.
With a 5.15% per share dividend yield, Kathmandu may be a good option for income but I wouldn't be banking on the company's share price for further capital gains in the next 12–18 months.
