Goat infant formula maker Bubs Australia share purchase plan heavily oversubscribed
Goat milk infant formula maker Bubs Australia received three times its target capital raising from retail shareholders and is forced to cut allocations.
GOAT milk infant formula manufacturer Bubs Australia has heavily cut allocations of its scrip after its share purchase plan was heavily oversubscribed.
In a vote of confidence in the company, Bubs received more than three times the $5 million it wanted to raise from existing retail shareholders to strengthen its balance sheet and provide opportunities for growth.
Bubs had received more than $17.4 million from shareholders wanting to increase their stakes at 95c a share.
Shareholders were offered shares up to a maximum of $30,000.
Company secretary Jay Stephenson said shareholders were scaled back to a minimum allocation of $2000 and then on a proportional basis for all amounts greater than $2000.
“The success of the SPP demonstrates strong support from the company’s existing shareholders for the company’s strategy,” Mr Stephenson said.
On December 6, Bubs announced it had allocated $30 million shares to institutional and professional investors.
Peter Hemphill’s family holds shares in Bubs Australia.
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