Ridley Raises $99 Million via Placement and Entitlement Offer at $2.12 per Share
Ridley Corporation has successfully raised approximately $99 million through an institutional placement and entitlement offer to partly fund its $300 million acquisition of Dyno Nobel’s fertiliser distribution business. The capital raising received strong support from institutional investors, setting the stage for a retail entitlement offer later this month.
- Raised $99 million via institutional placement and entitlement offer
- Funds to partly finance $300 million acquisition of Dyno Nobel’s fertiliser distribution business
- Strong institutional investor support with 99% take-up rate
- Approximately 47 million new shares to be issued at $2.12 each
- Retail entitlement offer to open May 19, 2025
Capital Raising Completes Successfully
Ridley Corporation Limited (ASX: RIC) has announced the successful completion of its underwritten institutional placement and institutional entitlement offer, raising approximately $99 million. This capital raise is a critical step in funding Ridley’s strategic acquisition of Dyno Nobel Limited’s fertiliser distribution business, known as IPF Distribution, for $300 million. The placement and entitlement offer attracted strong support from both existing and new institutional investors, with an impressive 99% take-up rate under the institutional entitlement offer.
Strategic Acquisition to Expand Market Footprint
The acquisition of Dyno Nobel’s fertiliser distribution arm represents a significant expansion for Ridley, which is already a market leader in animal nutrition products and services. By adding Australia’s number one fertiliser distributor to its portfolio, Ridley aims to strengthen its position in the agriculture sector, creating synergies between fertiliser distribution and animal nutrition. Ridley Chairman Mick McMahon highlighted the uniqueness of this opportunity to consolidate market leadership across complementary agricultural inputs.
Details of the Placement and Entitlement Offer
The capital raising involved issuing approximately 47 million new fully paid ordinary shares at an offer price of $2.12 per share. This includes around 30 million shares issued under the institutional entitlement offer, raising about $64 million, and approximately 17 million shares issued under the placement, raising around $35 million. These new shares will rank equally with existing shares and are expected to settle on May 21, 2025, with trading commencing the following day.
Retail Entitlement Offer to Follow
Following the institutional component, Ridley will open a retail entitlement offer on May 19, 2025, allowing eligible retail shareholders to participate in the capital raising. The retail offer is scheduled to close on May 30, 2025. Eligible shareholders will receive detailed information and personalised forms to facilitate their participation. This staged approach ensures broad shareholder engagement while completing the funding for the acquisition.
Looking Ahead
While the acquisition price is subject to customary adjustments for working capital and debt, the successful capital raising marks a pivotal moment for Ridley’s growth strategy. Investors will be watching closely as the retail offer unfolds and the acquisition completes, anticipating the impact on Ridley’s financials and market position. The integration of Dyno Nobel’s fertiliser distribution business could reshape the competitive landscape in Australian agriculture inputs.
Bottom Line?
Ridley’s capital raise sets the stage for a transformative acquisition, but the full impact will hinge on successful integration and retail offer uptake.
Questions in the middle?
- How will the acquisition affect Ridley’s earnings and cash flow in the near term?
- What synergies and cost savings can Ridley realistically achieve post-acquisition?
- Will the retail entitlement offer match the strong institutional support seen so far?
