EOH’s right offer has been oversubscribed, with the group successfully raising R500-million.
Given the success of the rights issue, the underwriters were not required to subscribe for any rights offer shares in terms of their underwriting commitments.
Total demand, including the underwriters’ commitments, for the R500-million shares offered was R1,03-billion.
EOH’s long term strategic partner, Lebashe Investment Group, has subscribed for an additional R100-million specific issue of shares, thereby increasing the successful capital raise to a total of R600-million.
Proceeds from the capital raise will be used to settle the majority of EOH’s bridge facility. This will allow for a debt restructuring at lower interest rates and provide the company with the ability to make significant investments in the growth of the business.
Stephen van Coller, group CEO of EOH, comments: “Today EOH celebrates a watershed moment, a long and difficult chapter has finally closed. We are hugely encouraged that, in this difficult environment, our rights issue has been oversubscribed.
“This incredible vote of confidence from our shareholders in the EOH of tomorrow, and the significant strategic progress the Board and management have made, is proof that EOH is investable again. Over 91% of shareholders followed their rights, with requests for additional allocations of R220 million.
“This, along with the R350-million underwriting commitments means a total demand of over 200% for the offer . I can’t adequately express how thankful I am to our staff, clients, lenders and suppliers for their unwavering support and patience during some uncertain times.
“This incredibly successful rights issue in a very tough economic climate welcomes a new era for EOH, with our now optimised capital structure giving us the ability to invest in our growth, knowing that our strategy for EOH 2.0 has the whole-hearted backing of all our shareholders and lenders.”
The rights offer closed at 12:00 on Friday (10 February 2023).
The table below sets out the results of the rights offer:
| Number of Rights Offer shares | Percentage of Rights Offer Shares | |
| Rights Offer Shares available for subscription | 384 615 384 | 100.0% |
| Rights Offer Shares subscribed for (excluding excess applications) | 352 972 679 | 91.8% |
| Excess applications for Rights Offer shares received | 169 256 773 | 44.0% |
| Rights Offer Shares allocated to excess applications | 31 642 705 | 8.2% |
| Rights Offer Shares allocated to the Underwriters | 0 | 0.0% |
| Total Rights Offer Shares subscribed for | 522 229 452 | 135.8% |