Food Empire raises $42.8m through 17 million share placement

The proceeds will help the company pursue growth strategies and optimise its balance sheet.

Food Empire Holdings Limited has raised around $42.8m of gross proceeds through the placement of 17.0 million treasury shares at $2.52 per share.

In a bourse filing, Food Empire said the shares were priced at a discount of approximately 5.38% to the volume-weighted average price of $2.6634. The placement price represents a premium of 3.27% to the 30-day volume-weighted average price.

Food Empire said the placement attracted strong participation from institutional and accredited investors, including Amova Asset Management, ICH Capital and Lion Global Investors Limited.

The share placement is expected to enhance the company’s trading liquidity, broaden its institutional investor base and help it to pursue growth opportunities, optimise its balance sheet and reinforce long-term investor confidence.

“At the same time, the placement allowed the group to monetise its treasury shares, which were acquired through substantial share buybacks at a net weighted average cost of $0.90,” the Food Empire said.

Following this development, Food Empire’s issued share capital excluding treasury shares increased from 529,847,125 shares to 546,847,125 shares.