Kiwi Property retail investors take up half their entitlement offer

Kiwi Property raised $38 million in the retail component of its one-for-11 pro rata entitlement offer.

Kiwi Property Group's retail investors took up half the shares available to them in their component of a planned $161 million capital raise, which the property investor wants to help fund expansion projects in Auckland.

Auckland-based Kiwi Property raised $38 million in the retail component of its one-for-11 pro rata entitlement offer, representing about 50 percent of the 56 million shares available, it said in a statement. That adds to the $80 million raised from institutional investors last month who took up 94 percent of their entitlements. The offer was fully underwritten, and the remaining retail entitlements will be sold via a bookbuild today run by joint lead managers Goldman Sachs New Zealand and Forsyth Barr.

The shares were sold at $1.36 apiece, a discount to the $1.43 trading price at the time of the announcement on June 19, and have gained to $1.385 since then. Trading in the shares has been halted to conduct the bookbuild.

Kiwi Property wants to use the money raised to help fund expansion projects at its flagship Sylvia Park mall in Auckland, Northlands in Christchurch, The Base near Hamilton, and a longer-term development at Drury, south of Auckland.

(BusinessDesk)

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