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‘Overwhelming’ response to IVE raising

Wednesday, 06 September 2017
By Print21

IVE Group completed the $38 million institutional shareholders section of its $55.6 million capital raising just two days after announcing the move to the ASX in its FY17 results.

The diversified print group says it raised $38.7 million in its Institutional Entitlement Offer after strong demand from both existing and new institutional shareholders.

Caxton Print Holdings, trustee for the Selig Family Trust – representing the interests of chairman Geoff Selig and non-executive director Paul Selig – took up 50 percent of its entitlement as part of the offer.

“We are delighted with the overwhelming response we have received from our existing institutional shareholders in support of these strategic initiatives and are pleased to welcome a number of new shareholders onto the IVE register,” said Geoff Selig. “The offer was significantly oversubscribed, which is a testament to IVE’s track record and the quality of its management team.”

The retail offer to secure the remaining $16.9 million of the capital raising opened at 9am (AEDT) on Monday, 4 September and will close on 13 September:

Under the Retail Entitlement Offer, Eligible shareholders are invited to apply for 1 New Share for every 4.4 existing Shares held as at the Record Date at the Offer Price of $2.05 per New Share.

IVE launched the $55.6 million equity raising of new shares to fund three initiatives:

  • $19.6 million for the acquisition, integration and growth capex for SEMA, a leading provider in data driven personalized communications services.
  • $22 million to acquire a second 80-page large format web offset printing press and ancillary equipment for the company’s Franklin WEB (NSW) operation.
  • $14 million to fund the continuation of the company’s accretive bolt-on acquisition program, pay transaction costs and to maintain balance sheet flexibility.

The company confirmed yesterday that the acquisition of SEMA has now been completed.

IVE’s revenue for FY17 was up 30.1 percent to $496.9 million, with earnings before tax rising 23 percent to $55.2 million.

IVE’s Blue Star operation in Sydney

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