- Generation Development Group (GDG) has successfully completed the institutional component of its previously announced capital raising
- Combined, the institutional placement and institutional entitlement offer raised approximately A$30 million
- GDG has entered an agreement with Moelis Australia Advisory and Morgans Corporate, to underwrite the entitlement offer’s remaining retail component
- Proceeds from the capital raising will fund the acquisition of a 37 per cent stake in research firm, Lonsec Holdings
- Generation Development Group closed 3.89 per cent in the red for 79 cents per share
Generation Development Group (GDG) has successfully completed the institutional component of its previously announced capital raising.
On September 17, the company announced its plans to raise up to A$35 million through a fully underwritten placement and partially underwritten entitlement offer. GDG has all but succeeded in this goal, based on the fruitful results of the institutional components.
Combined, the institutional placement and institutional entitlement offer raised approximately $30 million.
The placement, which received substantial support from new and existing institutional investors, raised approximately $21.9 million. Through the placement, a total of 31.2 million new shares in GDG will be issued.
The entitlement offer also attracted significant demand from institutional shareholders, raising approximately $6.2 million. Directors also took up eligible entitlements for a further $1.9 million, through subscriptions for fully paid ordinary shares in the company.
The new shares issued through the placement and institutional entitlement offer should be settled on September 25, 2020. They should accordingly be issued on September 28, and begin trading on September 29, 2020.
However, GDG’s capital raising is not yet finished, until the retail component of its entitlement offer is completed. The company has entered an agreement with the joint lead managers, Moelis Australia Advisory and Morgans Corporate, to fully underwrite the remaining retail component.
This retail entitlement offer will open on September 23, and should closed on October 5, 2020.
Proceeds from the capital raising will primarily fund the acquisition of a 37 per cent stake in research firm, Lonsec Holdings. This acquisition should cost the company approximately $20.1 million, leaving substantial funds for other initiatives.
Other funds will go towards providing regulatory and development capital for GDG’s new annuity product, general working capital, and transaction costs.
Generation Life’s CEO and Australian Olympian, Grant Hackett, commented on the successful first segment of the company’s capital raising.
“Due to the high quality of institutional investor support for the institutional offer, the board has now decided that the retail offer will be underwritten, providing certainty of a fully underwritten $35 million equity raising for GDG," he said.
“We look forward to the continuing support of our existing investors and welcoming the new institutional investors to GDG in this exciting stage of our journey,” he added.
Generation Development Group closed 3.89 per cent in the red for 79 cents per share.