KMD Brands (ASX:KMD) has finalised the institutional stage of its comprehensive equity raising programme, securing approximately NZ$44.2 million to fortify its balance sheet.
The dual-listed outdoor and lifestyle apparel group confirmed that the institutional entitlement offer and subsequent shortfall bookbuild were cleared at NZ$0.06 per share.
The offer saw a take-up rate of roughly 79% from existing institutional eligible shareholders, with the remaining 132.4 million shares placed during the bookbuild process.
An additional NZ$6.8 million was generated through an underwritten placement, contributing to the total institutional proceeds as the company seeks to accelerate its "Next Level" transformation strategy.
Following a brief trading halt, KMD shares are scheduled to resume activity on April 2.
Group CEO Brent Scrimshaw expressed satisfaction with the institutional support, noting that the capital injection provides the necessary financial flexibility to manage existing bank debt facilities.
Attention now shifts to the retail component of the NZ$65.3 million pro-rata accelerated entitlement offer, which is slated to open on April 7.
The retail tranche aims to raise a further NZ$21.1 million, offering shares at the same NZ$0.06 price point (approximately $0.05 for Australian investors).
While the offer price represents a discount to recent trading levels, the capital restructure is viewed as a critical step in stabilising the retailer’s long-term outlook.
New institutional shares are expected to begin trading on the NZX and ASX on April 13.
At the time of reporting, KMD Brands’ share price was $0.071.