Underwriters for resin and plastics maker Nuplex - which breached its banking covenants and subsequently raised $132 million in a rights issue last month - have fully exercised an option to raise a further $27.6 million in a 99 million additional share placement.
Nuplex shares were put on a trading halt early yesterday and came off just after 2pm, with underwriters First NZ Capital increasing the 99 million share price from 23c to 27c, worth an extra $3 million, which in total raised a further $27.6 million, ABN Amro Craigs broker Chris Timms said.
"The call option was fully exercised, which will see First NZ increase its stake."
The entire placement delivers $159.7 million to Nuplex, which was cash strapped and debt laden when it initially went to market. The option gives First NZ Capital a boost to its more than 4% share in the company. Shares resumed trading at about 34c.
Following the issuance of the 577.6 million 23c shares on Thursday, First NZ Capital, which topped up the under-subscribed offer buying $5.4 million or 4% of shares, had four days in which to exercise the option that Nuplex issue up to 99 million further shares, to sub-underwriters, institutional and habitual investors.
