Guest Contributor | Jun 11, 2018 | 0
Oryx rights issue over-subscribed
It was announced earlier this year in October on the Stock Exchange News Service that Oryx Properties Limited would proceed with a rights offer to raise cash of N$170,629,192.50. The rights offer opened on Monday, 28 October 2013 and closed on Friday, 15 November 2013. Oryx offered for subscription to Oryx unit holders a total of 11,008,335 new Oryx linked units at a subscription price of N$15.50 per right in proportion to their holding in Oryx on the initial record date (Friday, 25 October 2013).
Oryx unit holders were entitled to apply for excess units to a maximum of 10% of their original entitlement, if there were excess rights units available for allocation once the rights offer had closed. According to CFO Carel Fourie, a total of 93% of unit holders subscribed for units allocated to them, while 70% subscribed for additional units in excess of their rights. This resulted in an over-subscription of 32,074 units or N$497,147. Excess applications below 300,000 units will receive all the additional units applied for. A total of 11,008 330 new Oryx units to the value of N$170.6 million will be issued and listed on the NSX next week Tuesday 26 November 2013. Oryx Properties said it views the positive response from its unit holders as a vote of confidence in the company’s investment strategy to create and grow unit holder value and the underlying quality of the company’s property portfolio. The proceeds from the rights offer will be utilised to improve gearing by reducing interest bearing borrowings. The company has aggressively been growing its property portfolio and consequently also its interest bearing borrowings. The main projects being funded by the new debt are the Maerua Mall expansion and refurbishment totalling N$350 million and the Gustav Voigts acquisition of N$220 million which was finalised on 15 November 2013. This strategic important acquisition and the Maerua Mall refurbishment and extension project is expected to further enhance unit holder value. The liquidity provided by the cash raised with the rights issue will provide Oryx with the ability to expand the property portfolio when appropriate opportunities arise that will appreciate in value and produce a dependable, sustainable and growing income stream to its investors. The board of directors said they would like to extend their gratitude to all the unit holders that supported the rights issue.