EOH raises R600 million

·13 Feb 2023

EOH has raised R600 million from its shareholders through a rights offer and a specific issue of shares at R1.30 per share.

The R600 million raised comprised R500 million through a rights offer in which it issued 384,615,384 new shares, and R100 million through a specific issue of shares to a subsidiary, Lebashe Investment Group, which issued 76,923,076 shares.

The rights offer closed at noon on Friday (10 February 2023), and EOH said it was significantly oversubscribed as gross demand equated to more than 135% of the rights offered.

As a result, EOH added that underwriters Aeon, Anchor Capital, and Visio were not required to subscribe for any rights offer shares in terms of their underwriting commitments.

The table below shows the results of the rights offer.

“Today, EOH celebrates a watershed moment, bringing to a close a long and difficult chapter in our history. We are delighted that in this difficult environment, our rights issue has been oversubscribed,” said EOH CEO Stephen van Coller.

“The vote of confidence in the EOH business case and the strategic progress the board and management have made is a testament to our relevance and importance in a South African and global context,” he added.

Van Coller noted that over 90% of shareholders followed their rights, and applications for excess applications totalled R220 million.

He also highlighted that if one includes the R350 million underwriting commitments secured, the rights offer garnered demand for over 200% of the offer.

“I cannot adequately express how thankful I am to our staff, customers, lenders and suppliers for their unwavering support and patience during uncertain times.

“This successful rights issue welcomes a new era for EOH, as our optimised capital structure allows us to invest in our growth, knowing that our strategy for EOH 2.0 has the wholehearted backing of our shareholders and lenders,” he said.

EOH is currently trading at R1.71 per share as of 13 February 2023, with its share price having gained 19.58% over the past week.

However, despite the positives, the company is still trading at a year-to-date decline of 26.29%.