Shares in Fletcher Building leapt over 4 per cent today after the construction company completed a placement of 20 million shares at $7.05/share.
The placement was at just a 2c discount on the last sale price before the shares were suspended on Tuesday morning.
Building shares rose as high at$7.41 this morning before easing back to be 28c ahead of Monday's closing price on $7.35.
"You have to admire a company that can get a placement away like that," ASB Securities broker Stephen Wright said. "The drums were beating that there was strong demand," he said, adding that there was talk that bidding was three times the size of the placement.
The placement via a "book build", where institutions bid to buy the shares, was to help fund Building's purchase of Australia's Amatek Holdings for A$530 million ($579 million).
Brokers had expected the placement to be at a discount given the sharp run up in Building's share price in the past 12 months.
The $141 million placement was underwritten by Goldman Sachs JBWere and a floor price of $6.75 had been set.
Building chief executive Ralph Waters said the placement was "a further vote of confidence in Fletcher Building, and the strategy that has led to acquisitions such as Amatek".
Fletcher Building placed 25 million shares at $4.10 each, at a premium to the then prevailing price in 2003 when it raised money to help pay for the purchase of Tasman Building Products.
