fortescue-prices-440-million-placement

Fortescue prices $440 million placement

The Australian iron ore hopeful taps the international equity markets, accepting a 9% discount for the new shares.
AustraliaÆs Fortescue Metals has raised $440 million from international equity investors in a placement which priced overnight at A$36 per share. The price represents about a 9% discount to the shareÆs latest close, but a zero discount to the volume-weighted average share price over the last 20 trading days.

The company issued 14 million new shares, representing about 5% of its total issued capital. Allocations were confirmed last night after the deal was upsized from its initial target of $300 million. JPMorgan acted as sole bookrunner and joint lead manager with Southern Cross Equities.

The deal is FortescueÆs first significant equity capital raising and is part of a new A$1 billion fund raising plan...
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