Growthpoint raises R4.2bn equity capital through placement
Growthpoint Properties this morning announced that it successfully closed its sizeable R4.3 billion equity raise, which opened yesterday afternoon.
Thu, 12 Nov 2020 10:40:13 GMT
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AI Generated Summary
- Growthpoint Properties raises R4.3 billion in equity capital, surpassing initial target
- Focus on strengthening balance sheet and reducing debt amidst economic uncertainties
- Mixed shareholder reactions reflect varying views on the equity raise and its impact on Growthpoint
Growthpoint Properties, one of South Africa's leading real estate firms, has successfully closed a significant equity raise, surpassing its initial target by raising R4.3 billion in capital. The placement, which was oversubscribed at 2.74 times, reflects the strong demand for new Growthpoint shares in the market. This move comes at a crucial time for the company, as the real estate sector continues to face challenges stemming from the impact of the COVID-19 pandemic and the subsequent economic uncertainties. Growthpoint SA CEO, Estienne de Klerk, shared insights on the equity raise in an interview with CNBC Africa. De Klerk emphasized the importance of maintaining a robust balance sheet and reducing debt to navigate the current uncertain environment effectively. The company aims to leverage the capital raised to strengthen its financial position and capitalize on potential growth opportunities in the future. The move has received mixed reactions from shareholders, with some expressing concerns over dilution and others viewing it as a strategic step to fortify Growthpoint's position in the market. Despite the short-term fluctuations in share price, the company remains optimistic about its long-term prospects and the positive response to the equity raise.
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