IVE Group has completed the $16.9 million retail section of its $55.6 million capital raising to fund the acquisition of SEMA and the purchase a second 80-page offset press for its Franklin WEB operation in Sydney.
Retail investors took up 36 percent of their entitlements and underwriters Bell Potter and Shaw and Partners have been allocated just under five million shares not taken in the retail offer.
In a statement to the ASX, the diversified print group said:
IVE Group Limited is pleased to announce the successful completion of its fully underwritten 1 for 4.4 pro-rata accelerated non-renounceable entitlement offer.
Eligible retail shareholders supported the Retail Entitlement Offer, taking up 36% of their entitlements.
The approximately 4,932,722 new shares not taken up under the Retail Entitlement Offer will be allocated to the underwriters, Bell Potter Securities Limited and Shaw and Partners Limited, in accordance with the terms of the underwriting agreement.
“We’re absolutely happy with the completion of the capital raising and everything has gone very smoothly,” said IVE Group CEO Geoff Selig.
IVE Group concluded the $38.7 million institutional shareholders' segment of its $55.6 million capital raising just two days after announcing the move to the ASX in its FY17 results. Selig described the demand from institutional shareholders as “overwhelming.”
The company launched the equity raising of new shares to fund three initiatives: $19.6 million for the acquisition of data driven personalized communications specialist SEMA; $22 million to acquire a second 80-page large format web offset (LFWO) printing press and ancillary equipment for the company’s Franklin WEB (NSW) operation; and $14 million to fund the continuation of the company’s acquisition program, pay transaction costs and to maintain balance sheet flexibility.
IVE has confirmed the acquisition of SEMA has now been completed.
Selig said the purchase of a second LFWO press for the Franklin WEB site at Huntingwood in Sydney's west would finalise the rebalancing of LFWO capacity from Victoria to NSW to better service national retailers and publishers.
The first 80-page LFWO is currently being installed at Huntingwood, with the new facility on track to begin operations at the end of October.