Market responds well to Olam's three-tranche fundraising

The $602 million deal includes a $200 million placement that was completed on Monday, a $202 million rights issue due later this month and a $200 million share sale to Temasek.
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Chinese workers in Henan province sort through a mountain of cotton, one of the commodities that Olam supplies (AFP)</div>
<div style="text-align:left;"> Chinese workers in Henan province sort through a mountain of cotton, one of the commodities that Olam supplies (AFP)</div>

Singapore-listed Olam International gained 0.7% yesterday, which suggests investors are supportive of the three-tranche fundraising that it announced on Monday. It also means that the share price remains above the price at which it sold shares to institutional investors on Monday and that the upcoming preferential offering to existing shareholders continue to offer a bit of upside.

The S$740 million $602 million fundraising, which also include a batch of new shares that will be sold to Temasek, follows a news report last week that said the company was looking at a transaction. That forced Olam to make a statement, in which it confirmed that it was in discussions with certain...

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