Emeco Holdings Ltd (ASX:EHL) secured $77 million earlier this week through a 1-for-7.8 accelerated institutional rights issue priced at 25 cents.
Strong support for the offer was received from existing eligible institutional shareholders who took up 83% of their rights.
Notably, the company’s top 4 shareholders took up 98% of their rights.
Any shortfall stock from the institutional offer was reportedly quickly snapped up.
Follow-up retail offer to raise a further $13 million
The retail component of the rights issue is fully underwritten and seeks to raise a further $13 million under the same terms as the institutional component.
The retail component will open next Monday, 7 May 2018 and close 17 May 2018.
The 25 cent issue price represents a significant premium to where the company was trading 12 months ago at around 7 cents.
Total $90 million capital raising to fund Matilda acquisition
Emeco is the world’s largest, independent mining equipment rental business and services major resource projects with its global fleet of machinery.
The company has entered into a binding agreement to acquire Matilda Equipment, a national equipment rental business, for an enterprise value of $80 million.
The acquisition is considered highly earnings accretive as its annualised March quarter operating EBITDA is circa 3.3x when compared to Emeco’s current EBITDA of near 7x.