Incitec Pivot (ASX:IPL) - CEO & Managing Director, Jeanne Johns
CEO & Managing Director, Jeanne Johns
Sourced: QUT
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  • Manufacturing company Incitec Pivot (IPL) has completed a $600 million placement that was announced only yesterday
  • Approximately 300 million shares were issued to professional and institutional investors at a price of $2 each
  • Incitec will use the money to strengthen its balance sheet and provide financial flexibility to pursue growth opportunities
  • The company will now open a share purchase plan to raise an extra $75 million
  • However, Incitec has ended the day 7.76 per cent in the red with shares trading for just over $2 each

Manufacturing company Incitec Pivot (IPL) has completed a $600 million placement that was announced only yesterday.

Approximately 300 million shares were issued to professional and institutional investors at a price of $2 each.

The company received significant interest from both domestic and international investors, however, 98 per cent of shares were allocated to existing shareholders.

The money raised will be used to strengthen Incitec’s balance sheet, increase resilience in the current unstable environment, and provide financial flexibility to pursue growth opportunities.

“The success of the equity raising is a clear endorsement of IPL’s businesses and its long-term strategy,” CEO and Managing Director Jeanne Johns commented.

“This pre-emptive action will strengthen our balance sheet and increase our resilience in the current environment and provide financial flexibility to support the delivery of our strategy to drive long term shareholder value,” she added.

Shares are expected to be issued on May 14 and begin trading on the ASX on May 15.

Yesterday, Incitec also announced a share purchase plan to raise up to $75 million.

Under the share purchase plan, eligible shareholders will be able to purchase up to $30,000 worth of new fully paid shares in the company. No transaction, brokerage, or commission costs will be incurred.

The share purchase plan is expected to open on May 19, close on June 9, and allocate shares on June 16. Shares can then begin trading on the ASX on June 17.

Finances

Further, Incitec released its half-year report yesterday and saw an increase in both revenue and profit.

Revenue was up from $1.724 billion from March 2019 to $1.847 billion in March 2020, while net profit increased from $41.6 million in March 2019 to $64.6 million in March 2020.

However, Incitec has ended the day 7.76 per cent in the red, with shares trading for $2.02 each in a $3.533 billion market cap.

IPL by the numbers
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