Incitec Pivot the latest to raise capital

Fertiliser and explosives business Incitec Pivot has become the latest large manufacturer to tap the capital markets for new equity to tide it thorough the Covid-19 pandemic.

The company has successfully placed $600 million in new equity with institutional investors in a fully underwritten offering at $2 a share.

It now plans to raise an additional $75 million from existing shareholders through a share purchase plan.

The significant support achieved from investors confirms there is still an appetite for investment in Australian manufacturers, especially ones like Incitec Pivot with a global reach.

Large international companies such as Cochlear as well as young businesses such as Carbon Revolution have found it is possible to raise large amounts of new equity even in these times.

Incitec Pivot recently decided to retain rather than hive off its Pivot Fertilisers business after a strategic review.

Through its Dyno Nobel brand it is one of the world’s largest producers of industrial explosives and a leader in initiating technologies.

Managing director Jeanne Johns said the company now had the flexibility to pursue disciplined growth opportunities.

Johns said: “The success of the equity raising is a clear endorsement of IPL’s business and its long-term strategy.

“This pre-emptive action will strengthen our balance sheet and increase our resilience.”

Picture: Incitec Pivot

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