Fairfax raises A$500m in share offer

SYDNEY - Fairfax Media Ltd has raised A$500 ($649.26) million under an offer of shares to institutions.

The retail leg of the offer opens on Wednesday.

The publisher announced on Friday it wanted to raise up to $684 million under a three for five non-renounceable pro-rata entitlement offer of shares at 75 cents each.

Fairfax said today its offer had received strong support from existing shareholders, with 98 per cent of domestic institutional shareholders and 90 per cent of all institutional shareholders taking up their entitlements.

It said demand from existing Australian and international institutional shareholders in the bookbuild more than covered the entitlement shares not taken up.

"These shares were fully allocated to existing institutional shareholders on an equitable basis to those who applied for additional shares," it added.

"This successful equity raising considerably enhances the financial position of the company in these difficult economic times and reaffirms our shareholders faith in our great company," chairman Ron Walker said in a statement.

The net proceeds of the offer will be used to pay down a large part of its debt maturing in 2011 and 2012.

- AAP