Institutional investors have responded rapidly to hearing technology group Cochlear’s efforts to raise new capital, subscribing $880 million in new capital within two days.
The company, which is raising capital to tide it over a slump in surgical implant procedures of its devices caused by the Covid-19 coronavirus pandemic, originally intended to raise $800 million, but was rushed by existing institutional shareholders.
Chairman Rick Holliday-Smith said: “We are grateful and delighted with the strong support for the placement shown by our shareholders.
“We now have a fortified balance sheet and are well positioned to emerge from this global health pandemic in a strong competitive position.”
The company is also proceeding with a share purchase scheme for existing shareholders who may buy up to $30,000 of Cochlear stock at a price of$140.
At 11.00 eastern time Cochlear shares were trading at around $163.67.
The share purchase scheme will raise a further $50 million.
Picture: Cochlear/Nucleus 7
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