National Storage (ASX:NSR) share price returns on equity raising efforts

The self-storage operators shares have fallen after the company's positive update…

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The National Storage REIT (ASX: NSR) share price has returned to trading following the company's completed Institutional Entitlement Offer.

At the time of writing, the self-storage provider's shares are swapping hands for $2.05, down 1.44%.

National Storage share price resumes

It's been a disappointing day for National Storage shares, with investors selling their holdings amid the company's successful equity raise.

According to its release, National Storage has raised gross proceeds of approximately $260 million through the accelerated non-renounceable entitlement offer.

The institutional component sees 1 share issued for every 6.27 National Storage shares owned. Issued at a price of $2.00 apiece, the majority of eligible institutional security holders took up their allocated minimum entitlements.

The newly created shares will be allotted to accounts on 23 June, and available to trade on the same day.

With the Institutional Entitlement Offer now completed, the retail component will commence on 15 June 2021. Hoping to raise an additional $65 million, National Storage will offer the same terms and ratio of shares to eligible retail shareholders. The Retail Entitlement Offer is expected to close on 24 June.

In total, the company is aiming to raise $325 million to repay debt and provide further liquidity on its balance sheet.

National Storage managing director, Andrew Catsoulis commented:

We are very appreciative of the huge amount of support received for National Storage and its growth strategy from both existing and new institutional shareholders. The equity raising will allow National Storage to strengthen the balance sheet, replenish investment capacity and provide additional funding flexibility going forward.

About the National Storage share price

Despite the small and sharp share price movements, National Storage shares are up by 7% over the last 12 months. Year-to-date share price performance is also similar, increasing by more than 6%.

National Storage presides a market capitalisation of roughly $2 billion, ranking 186 in terms of company value on the ASX.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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