AUB Group equity raising of $116m to go ahead as planned

Speculation that AUB Group may have to reprice its equity raising was quashed last night as sources said the group was on track to raise its $116 million.

The move by AUB, a listed financial advice company formerly known as Austbrokers, is intended to raise funds to pay down debt, with shares being offered at $12.30 each as part of a four-for-27 non-renounceable entitlement offer.

Funds raised will also be used to acquire another 44 per cent in Adroit Holdings.

The acquisition was a 9.9 per cent discount to the company’s last traded share price of $13.65.

No doubt more will be revealed today when the company’s shares are released from a trading halt.

Difficult trading conditions have been taking their toll across the board on the Australian equities market, with several companies forced to delay their plans until next year when conditions are expected to stabilise.

Perhaps the only initial public offering now happening is the float of Heathley’s real estate investment trust.

The property group has just bought new properties worth $16m and is trying to tap the market for between $160m and $180m for its medical centre assets. The management roadshow for the float takes place this week.

The IPO, advised by JPMorgan and UBS, will no doubt be an interesting test for the market and many will be eager to see if it does in fact list as a company with a $373m market value as planned.