Vicinity Centres (ASX:VCX) - CEO, Grant Kelley
CEO, Grant Kelley
Source: Financial Review
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  • Retail property giant Vicinity Centres (VCX) has completed its non-underwritten security purchase plan after raising $32.6 million
  • The company received approximately 2400 applications for 22.6 million fully paid stapled securities
  • This comes on the heels of the Vicinity’s recent institutional placement, which successfully raised a whopping $1.2 billion
  • The company is raising money through every avenue that it can, in order to stay afloat after suffering COVID-19’s impacts
  • Vicinity Centres’ shares are 2.47 per cent higher today, trading for $1.35 each

Retail property giant Vicinity Centres (VCX) has completed its non-underwritten security purchase plan after raising $32.6 million.

The company first announced the purchase plan on June 1, 2020, and closed it on July 6, 2020. At the time, Vicinity hoped to raise $200 million from the purchase plan, a far cry from the reality announced today.

Through the course of the security purchase plan, Vicinity received approximately 2,400 applications from eligible securityholders. The company has confirmed that it will accept all valid applications to the purchase plan in full. As such, it will issue approximately 22.6 million new, fully paid stapled securities.

Vicinity Centres will issue the new securities at $1.44 each. Over the five trading days leading up to and including the purchase plan’s closing date, the volume-weighted average security price was $1.47. As such, the new securities come at a two per cent discount.

The company expects to issue the new securities on July 13, 2020. The securities should begin trading on the Australian Securities Exchange on the following day.

This purchase plan comes on the heels of Vicinity’s recent institutional placement, in which it raised a whopping $1.2 billion. The company has been raising money through every avenue available, in order to stay afloat.

Vicinity has suffered severely as a result of the ongoing COVID-19 pandemic. The company felt the virus’ impacts when many retail stores were forced to close down during lockdowns.

The money from the securities purchase plan and prior placement will go towards strengthening the company’s balance sheet. In particular, some of the proceeds will go towards repaying the company’s debts.

Vicinity Centres’ shares are 2.47 per cent higher today, trading for $1.35 each at 3:06 pm AEST.

VCX by the numbers
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