Kingsgate Consolidated confirms equity raise

Sarah Thompson, Anthony Macdonald and Gretchen Friemann

Updated Mar 18, 2014 – 10.25am, first published at 10.01am

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Kingsgate Consolidated is raising $59.4 million via an institutional placement and rights issue, as flagged by Street Talk on Tuesday.

The deal is being managed by CIMB and Morgan Stanley and the shares have been placed in a trading halt. The offer price is $1.00 per new share, a 22 per cent discount to the last close and one-month volume weighted average price. It was also an 18 per cent discount to the theoretical ex-rights price.