Mirvac (ASX: MGR) is undertaking a $825M capital raising in order to fund its continued growth. Capitalising on a strong share price, MGR announced that it has raised 90% ($750M) of the amount from institutional investors with the balance to be funded by a Security Purchase Plan for retail Eligible Securityholders.
New securities under the placement will be issued at $2.97 per unit and will be eligible for the June 2019 distribution. The funds raised will be initially used to repay debt and before being deployed to support a development pipeline of over $4B as well as identified acquisition opportunities with an end value of over $2B.
The capital raising was well supported by the market, with MGR securities currently trading at a slight premium to the placement price. Coinciding with the placement, MGR announced that its FY19 earnings are expected to be at the top of its guidance and FY20 earnings are expected to grow by at least 2%.