Argosy raises $86.9m in rights issue, bookbuild to fund acquisitions

Although the shares slipped 0.5 cents to 99 cents yesterday they have gained 11% this year.

Argosy Property, which recently bought two Wellington commercial properties, has raised $86.9 million in a rights issue and bookbuild to repay bank debt taken on for its recent acquisitions.

The Auckland-based company sold 87.2 million shares at 89 cents apiece, or $77.6 million, to shareholders who exercised their rights in a 1-for-7 pro-rata renounceable offer, it says in a statement.

That made up about 89 percent of the available shares on offer and the remainder was filled through a shortfall bookbuild at a premium of 7.5 cents per share, a clearing price of 96.5 cents. That premium will be paid pro-rata to holders of unexercised rights on August 16, it says.

"The board is very pleased with the outcome of the capital raising, which was well received by the company's existing institutional and retail shareholders," chairman Mike Smith says.

"The board wishes to thank all shareholders for their continued support of the company."

The shares slipped 0.5 cents to 99 cents yesterday and have gained 11 percent this year.