BWP Group (ASX: BWP) shares are back trading on Thursday after the property group completed the institutional part of its capital raising.
The BWP share price is down 1.52% to $3.88 at the time of writing.
That means the stock has given back some ground after its trading halt, although it remains up around 7% over the past month.
BWP is best known as a major landlord to Bunnings. It owns and manages a portfolio of retail warehouse properties across Australia.
The latest update follows Wednesday's announcement that BWP was raising about $228 million through a fully underwritten entitlement offer.
Here's what investors are looking at today.
Image source: Getty Images
Institutional offer completed
BWP said it has successfully completed the institutional component of its fully underwritten 1-for-12 accelerated non-renounceable pro rata entitlement offer.
The offer was priced at $3.77 per new security.
That was below the last traded price of $3.94 before BWP entered its trading halt on Wednesday.
According to the release, the institutional offer received strong support from eligible institutional securityholders, with a take-up rate of about 98%.
BWP said the institutional component raised gross proceeds of around $122 million, which included Wesfarmers Ltd (ASX: WES) taking up its full entitlement of about $53 million.
Wesfarmers remains BWP's largest securityholder, holding a 23.4% stake.
BWP also said the shortfall attracted demand from both existing and new institutional investors.
Around 32 million new securities will be issued under the institutional offer at the $3.77 issue price.
Retail offer comes next
While the institutional component has been completed, the raising is not finished yet.
BWP said the retail entitlement offer is expected to raise about $106 million.
Eligible retail securityholders will be able to apply for 1 new security for every 12 existing BWP securities held at the record date.
The retail offer will be priced at the same $3.77 per new security as the institutional offer.
The retail offer is expected to open on Tuesday, 12 May, and close on Friday, 22 May.
New securities issued under the institutional component are expected to begin trading on Monday, 18 May.
Foolish takeaway
The institutional result looks good, and it gives BWP a strong start to the raising.
But investors now have the $3.77 offer price sitting in front of them.
This can make it harder for the share price to push much higher in the short-term, even with the stock still trading slightly above that level.
I'd be more inclined to watch what BWP does with the money from here.
The project pipeline gives BWP room to grow, but investors will want to see that reflected in valuations, rental income, or earnings.
