YESTERDAY'S A2 Milk Company offer of 58.8 million new shares as part of a $NZ40 million capital raising has been oversubscribed already.
The new shares in the New Zealand founded businesses were offered at NZ68 cents each and commence trading on the NZX main board on October 15.
Managing director Geoff Babidge said the capital raising was important to help strengthen the specialty milk processor and marketer's balance sheet, providing funding flexibility for its growth in Australia, NZ and targeted markets in China, the UK and the US.
Increased working capital was particularly needed to expand the infant formula market business in Australia, NZ and China in the wake of unexpectedly bullish demand.
The dual NZ and Australian-listed A2 is also planning a further $NZ3 million capital raising through a at 68c a share purchase plan to be offered to shareholders already on the company's register.
Company chairman David Hearn said the level of support from existing shareholders and new investors was heartening.
Goldman Sachs NZ managed and led the share placement underwriting process.
Andrew Marshall
National agribusiness writer for Fairfax Agricultural Media.
National agribusiness writer for Fairfax Agricultural Media.
