Brisbane Markets Limited (BML) has finalised the allocation of shares following the company’s heavily oversubscribed capital raising.
BML, which signalled to shareholders more than 12 months ago a potential capital raising to support the ongoing upgrading and development of the Brisbane Markets site, secured $38.4 million.
BML’s Chairman Tony Joseph, has thanked investors and highlighted that “the heavily oversubscribed offering is a strong vote of confidence by shareholders and investors in the direction of the Brisbane Markets under BML management”.
As a result of the capital raising, the number of shareholders in the company will increase with 137 new investors taking the total number of shareholders to just over 300.
Given the offer was heavily oversubscribed, the allocation of shares has been determined by applying the Allocation Policy outlined in the Prospectus.
While this may mean some new investors are disappointed at not receiving all the shares they applied for in the public offer, the Board was cognisant of trying to accommodate the wide and strong level of interest.
Morgans, the lead manager and underwriter of the Public Offer, said the strong support given for the capital raising reflected the view that “BML was a well-run company achieving good results”.
“A key attraction of the Offer was BML’s successful track record of consistently delivering revenue, earnings, asset and dividend growth,” Morgans’ Roger Leaning said.
The capital raising followed ongoing negotiations with a number of Market tenants in relation to the development of substantial new warehouse facilities.
This demand came to fruition earlier this year when the Montague Group, a leading Australian grower and marketer of apples, pears, stone fruit and exotic fruit, executed an Agreement to Lease a new 5,578m2 purpose-built warehouse to be constructed by BML.
BML will also use the capital raised to support other projects which are expected to be revenue positive, including the third stage of a roof top solar installation, aimed at providing further major expansion of BML’s existing solar generation capacity through the installation of up to a further 7,500 panels.