Brait SE, a South African investment holding company with billionaire businessman Christo Wiese among its major stakeholders, has successfully raised R1.5 billion ($82.3 million) through a rights offer. This move marks a significant show of investor confidence, strengthening Brait's financial standing as it navigates a challenging market environment.
The rights offer, which was oversubscribed, involved the issuance of 2.54 billion new shares, with a remarkable 96.1 percent uptake before accounting for oversubscriptions. This strong response underscores the market's confidence in Brait's strategic direction.
Market confidence solidifies Brait's financial positionShareholders further demonstrated their support by applying for an additional 1.68 billion shares, leading to the allocation of 100.39 million excess shares on a pro-rata basis. Notably, the full subscription of the offer meant the underwriter was not required to fulfill any shares, reflecting robust market confidence in Brait's long-term prospects.
Following the rights issue, Brait's total issued share capital has surged from 1.32 billion to 3.86 billion shares. The newly issued shares were credited to shareholder accounts in dematerialized form on Aug. 12, with the distribution of excess shares and refunds for unsuccessful applications scheduled for the following day, Aug. 13, 2024.
