IVE CONFIRMS $20M CAPITAL RAISING

Following IVE Group's acquisition of the printing and finishing assets of Ovato last week, the print giant has announced a $18 million capital raising to investors and will also offer existing eligible shareholders the opportunity to raise around $2 million.

‘We are delighted with the strong support we received for the placement from our existing and new shareholders. We thank existing shareholders for their continued support and welcome our new investors," said IVE Executive Chairman, Geoff Selig.

"We are pleased that investors have recognised the strategic value of the Ovato transaction and will now mobilise to integrate the acquired Ovato assets into IVE’s existing operations to optimise operating leverage and deliver synergies," he added.

Selig explained that the capital raising will preserve significant balance sheet capacity for IVE to pursue previously announced growth initiatives including further organic initiatives (for example, Lasoo e-Commerce marketplace.

He said it will also support further opportunistic ‘bolt-on and/or strategic acquisitions (for example, in the adjacent packaging sector); and strengthen and deepen IVE’s institutional shareholder base, increasing liquidity in the market for IVE shares.

Ovato went into administration in July, with expressions of interest requested by 29 July. It was acquired by IVE Group on 14 September.