Harvey Norman is embarking on capital raising of approximately $120.7 million, with the proceeds to be used to fund the payment of a special dividend to shareholders.The retailer today announced an entitlement offer for eligible shareholders to subscribe for one new share for every 22 existing shares at an offer price of $2.50 per new share.
Harvey Norman’s closing price yesterday was $3.71.
The proceeds will assist the retailer to “achieve its capital management objectives”, and will specifically be used to fund the payment of a special fully franked dividend to shareholders of $0.14 per share.
The new shares will not be entitled to the dividend, with Harvey Norman stating the dividend is anticipated to be paid on 30 December 2014.
The offer is fully underwritten by Patersons Securities, with Patersons also entering into a sub-underwriting arrangement with chairman Gerry Harvey in respect of the offer.
Each director of Harvey Norman has indicated they will take up their full entitlement under the offer, Harvey Norman advised.
