NZ Refining raises $39m from share placement

NZ Refining has completed a $39m share placement aimed at providing private storage services. Photo / Northern Advocate

NZ Refining has completed a $39 million share placement to fund private storage services, saying the capital raise was well-supported.

The placement was underwritten at a floor price of $0.82 per share.

The final placement price was set at $0.83 per share, representing a 5.7 per cent discount to last Friday's closing price of $0.88.

All other retail shareholders will have the opportunity to take up additional shares through the share purchase plan (SPP), which is aimed at raising a further $5m.

The placement was underwritten by Forsyth Barr Group.

The SPP, which is not underwritten, opens on December 2.

Chief executive Naomi James said the placement was well supported by existing institutional and retail shareholders, as well as a number of new investors.

"This capital raising and support for the company provides the funding for us to pursue complementary growth through private storage services which we expect to deliver value for shareholders," she said in a statement.

NZ Refining has been the country's only oil refinery since it was established in 1961.

A steep decline in refining margins, brought on by excess refining capacity in the Asian region, mean the company is now in the process of becoming an oil terminal.

Trade in the company's shares will resume today after going into a trading halt for the capital raising yesterday.