The Treasury Wine Estates Ltd (ASX: TWE) share price is having a strong session.
In afternoon trade, the wine giant's shares are up 3% to $10.78.
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Why is the Treasury Wine share price rising today?
The company's shares are lifting today after a lower-than-expected inflation reading boosted sentiment.
This has sparked hopes that the Reserve Bank won't need to increase rates any further, which could be good news for Treasury Wine's sales in the local market.
If interest rates were to go higher, it could put pressure on spending on discretionary items like wine.
What else?
In other news, the company revealed that it has completed the retail shortfall bookbuild of its capital raising.
This bookbuild represents the final stage of its entitlement offer, which has raised gross proceeds of approximately $825 million.
However, given the recent weakness in the Treasury Wine share price, demand for the retail shortfall bookbuild wasn't strong. So much so, that it did not clear at the offer price of $10.80 per new share.
This means that eligible retail shareholders who elected not to take up their entitlements will not receive any consideration for their retail entitlements. Instead, the 16 million new shares that were on offer will now be issued to the sub-underwriters.
Nevertheless, the company's CEO, Tim Ford, was pleased with the capital raising. He said:
We thank all shareholders who participated in the entitlement offer to support the acquisition of DAOU Vineyards. We now look forward to completion and bringing our two businesses together, accelerating our focus on luxury-led portfolio premiumisation and establishing Treasury Americas as a leading and iconic US luxury wine business.
