JSE-listed Aveng intends to launch a follow-on rights offer of 6.7-billion ordinary no par value shares and class A shares.
The follow-on rights offer will be made to qualifying shareholders at 1.5c per follow-on rights offer share.
On March 19, Aveng completed an initial co-underwritten renounceable rights offer and its debt restructure transaction.
Although it had planned to raise R300-million in the initial rights offer, it raised R392-million, with shareholders having subscribed for R278-million and the underwriters subscribing for their minimum required subscriptions.
Shareholders had demonstrated a much higher than anticipated interest in the initial rights offer and certain existing shareholders had indicated their willingness to provide further capital to support Aveng.
Accordingly, the company has elected to launch the follow-on rights offer to realise the additional capital to provide it with the opportunity to further solidify its balance sheet and provide the capital to accelerate its business plan and explore identified growth opportunities that will provide attractive returns, mainly in the Moolmans business.