Sydney premium vitamin manufacturer Blackmores has found strong investor support for its capital raising with a share purchase plan closing significantly over-subscribed.
The company had beem planning to raise $25 million but received applications from existing shareholders for new shares worth $77 million.
The company decided to scale back allocations to individual investors on a pro rata basis, eventually raising $49 million for the issue of 669,812 new shares issued at $72.50 a share.
The price was the same as an earlier raising in a placement to institutional investors, with Blackmores raising a total of $141 million.
CEO Alastair Symington said: “(This is) a very strong signal from our retail shareholders on their belief in oir strategy, the management team at Blackmores and our choices for growth moving forward.
“We are now well placed to not only strengthen our balance sheet but capitalise on key strategic priorities in Asia while at the same time rejuvenating Australia.”
Blackmores was founded by naturopath Maurice Blackmore in 1932, and now employs 1,400 people, including in China where it has a focus on Chinese herbal medicines.
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