KMD Brands is on track to hit its targeted NZ$65.3 million equity raise, locking in the majority of funds as it looks to stabilise its balance sheet and reset the business.
The group which manages Kathmandu, Rip Curl and Oboz Footwear confirmed it has completed a NZ$6.8 million underwritten placement alongside the institutional component of its accelerated entitlement offer, raising combined gross proceeds of approximately NZ$44.2 million.
The institutional raise drew decent backing, with eligible shareholders taking up around 79 per cent of available entitlements. The remaining shortfall was cleared through a bookbuild at the offer price of NZ$0.06 per share.
While the raise is not yet fully complete, KMD is expects to bring in a further $21.1 million via its retail entitlement offer, which opens on April 7. Combined, this should take total proceeds to roughly NZ$65.3 million.
The capital raising is fully underwritten, giving KMD funding certainty regardless of retail participation levels.
The structure highlights a clear skew toward institutional backing, with the bulk of funds secured upfront as the group moves to reinforce its financial position. New shares issued under the placement and institutional entitlement offer are expected to begin trading from April 13.
KMD Brands group CEO and managing director Brent Scrimshaw said he and the team are pleased with the support for the institutional component of the equity raising.
“The raise will strengthen KMD’s balance sheet and position us to continue executing our Next Level transformation,” he said.
“We now look forward to inviting our retail shareholders to participate in the equity raising.”