Z Energy raising $NZ350m

Z Energy has priced its equity raising at $NZ2.90 per share on the back of strong demand for shares in the company.

Z Energy announced Monday it was raising $NZ350m of equity through a bookbuild, with a floor price of $NZ2.75 per share.

The raise was handled through investment bank Goldman Sachs, which landed the mandate despite the loss last week of its Australian and New Zealand head of equity capital markets, Sarah Rennie, who is heading to Kiwi banking competitor Jarden.

The New Zealand fuel retailer, which is listed in Australia, will secure $NZ290m through a placement and $NZ60m through a share purchase plan.

The funds will be used to prevent any debt covenant breach amid COVID-19.

It also comes as the company slashes about $NZ80m of costs.

In a book message sent out on Monday, investors were told indications of demand from a limited number of wall-crossed investors exceed the placement at the underwritten floor price.

Bids are being accepted at three price points: $NZ2.75, $NZ2.80 and $NZ2.85.

The company has a $1.19bn market value.