JSE-listed construction group Aveng has successfully completed its rights offer, raising more than R300-million through the issue of about 20-billion shares at 1.5c apiece.
The company says the shareholder participation rate of 92.61% in the rights offer exceeded expectations, raising total new capital of R392-million, comprising R277-million in terms of the rights offer shares taken up by shareholders and the additional balance taken up by underwriters.
There are now 43.9-billion Aveng shares in issue.
The company aims to restructure its balance sheet, deleveraging it by R1-billion, which will extend the group’s maturity profile to three years and simultaneously materially improve its liquidity pool.
Aveng previously explained that the transaction not only provides the company with the capital structure flexibility to complete its noncore asset sale programme and to wind down its remaining exposure to discontinued businesses, but also sets the group on a path to pursue its strategy around the group’s core businesses, McConnell Dowell and Moolmans, which have returned to profitability and where Aveng sees further business improvement prospects and growth opportunities.