G8 completes institutional phase of transaction with $227m raised
The Sector > Provider > Reporting > G8 completes institutional phase of transaction with $227m raised

G8 completes institutional phase of transaction with $227m raised

by Jason Roberts

April 14, 2020

G8 Education has confirmed it has raised $227 million from institutional investors by way of a placement and entitlement offer at $0.80 cents per share as it aims to shore up reserves due to the challenging market conditions created by COVID-19. 


The sum represents the institutional component of the capital transaction announced on 9 April 2020 with the retail component, expected to be around $74 million, to open on 20 April 2020 and close on 1 May 2020. 


Institutional demand for the entitlement offer was strong with 99.7 per cent of eligible investors taking up their rights to subscribe at $0.80 per share. No details were provided on demand levels for the institutional placement portion of the transaction. 


A total of 278 million new shares will be issued. G8 shares, suspended since last 2 April 2020,  have now recommenced trading. 


CEO Gary Carroll said “We are very pleased by the strong support we have received from investors for the Placement and Entitlement Offer. The cash preservation and capital measures we have announced, including the equity raising, provide G8 with additional liquidity and financial flexibility to navigate this current period of market disruption. It allows us to maintain our high quality services to our families, helps us to retain our quality team, and puts us in a position of strength for the recovery phase.”


The successful completion of the institutional component of the capital raise will be followed by the retail component which as noted will open on 20 April 2020. 


Retail investors will be able to take up their entitlement of 1 share for every 2.2 shares owned plus an additional 25 per cent over and above their entitlement. 


This “oversubscription facility” will provide retail investors with the opportunity to participate more fully in the raise if they want to on the same commercial terms ie: $0.80 a share as their institutional counterparts. 


For more details on the retail timetable and terms please see towards the bottom of the announcement here

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