Australian agribusiness Ruralco to raise $25M through share offering

By VCPOST Staff Reporter

Dec 16, 2013 11:51 PM EST

Ruralco Holdings Ltd said it will undergo a fully underwritten institutional placement to raise $25 million. The proceeds of the equity raising will be used to provide financial flexibility for the company's growth, according to Business Spectator.

A statement made to the Australian Securities Exchange (ASX) said Ruralco's shares are offered at $3.25 apiece, the report stated.

The report said Ruralco will use the proceeds for its geographical expansion in partnership with other businesses. The company will also build critical mass in grain and water sectors. In addition, the agribusiness will pursue other acquisition opportunities in line with its growth strategy, the report detailed.

The Australia branch of UBS AG is the sole lead manager and underwriter of Ruralco in relation to the transaction, the report stated.

In a statement to the ASX, Ruralco requested a trading halt for its shares pending the announcement of the placement. The firm also said the halt will not last longer than December 18, Business Spectator reported.

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