At the time of writing, AMA shares are travelling 5.21% higher to 51 cents.
Details of the retail component
Last week, AMA announced its intentions to raise approximately $150 million through a $100 million fully-underwritten equity raising. This consists of both a completed $53 million institutional offer and the current $43 million retail entitlement offer. Another $50 million comprises of the convertible notes offer, which has since been successfully completed and is expected to settle on 21 September.
However, the company revealed the details of the second part of its accelerated non-renounceable pro rata entitlement offer.
The retail entitlement offer allows shareholders to subscribe for 1 new AMA share for every 2.8 existing AMA shares held. The issue price is set at 37.5 cents per share which is the same offered in the institutional entitlement offer. This represents a 10.7% discount to the closing price of 42 cents per share when the offer was announced on 3 September. It’s expected that around 125 million new shares will be created.
The net proceeds of the entitlement offer and the convertible notes offer will be used to repay some debt facilities. In addition, a portion of the monies will be set aside for working capital, liquidity, and supporting growth initiatives.
The retail offer opens today and closes on 30 September 2021. Settlement is scheduled to occur on 6 October, with allotment on the following day.
About the AMA share price
It’s been a rollercoaster 12 months for AMA Group shares, registering a 25% loss for the period. When looking at year-to-date, its shares are in the red further by almost 35%.
AMA Group has a market capitalisation of about $380.7 million, with over 746 million shares on its books.