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.
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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