Shares in APN News & Media surged to an 18-month high when they resumed trading after institutions put up A$112 million in a planned capital raising for the media group to buy out its partner to take control of its radio businesses.
The dual-listed stock rose 14 per cent to 56 cents on the NZX, its highest level since Aug. 16, 2012, and was up 22 per cent to 53.7 Australian cents on the ASX.
The Sydney-based company raised A$112 million from institutions with about 98 per cent of those eligible investors taking up their 5 for 9 entitlement at 36 Australian cents a share. A further A$20 million will be raised from existing retail investors when the offer opens on Feb. 27. Both parts of the capital raising were underwritten by CBA Equities.
"We are delighted with the support that we have received from our shareholders," chief executive Michael Miller said in a statement. "In addition to the high take-up rate, we are also very encouraged by the significant interest from new institutional investors."
APN has been restructuring its business over the past year, quitting assets including its stake in an outdoor advertising venture, its unprofitable brandsExclusive online shopping site and a suite of New Zealand magazines