IVE Group raises $18 million

IVE Group Ltd (IVE) has announced the successful completion of an institutional placement to raise $18m, 24 hours after announcing the Placement ; having generated significant interest, and received strong support from existing investors as well as new institutional investors. Approximately 8.0m new fully paid ordinary shares are expected to be issued under the Placement at $2.25 per New Share, representing a 5.5% discount to the last close price on Friday, 16 September 2022.

Concurrently with the Placement, the Selig Family successfully completed a non-underwritten selldown of 4.5m ordinary IVE shares at the Placement Price.

IVE Executive Chairman, Geoff Selig, said: ‘‘We are delighted with the strong support we received for the placement from our existing and new shareholders. We thank existing shareholders for their continued support and welcome our new investors. We are pleased that investors have recognised the strategic value of the Ovato transaction and will now mobilise to integrate the acquired Ovato assets into IVE’s existing operations to optimise operating leverage and deliver synergies.

The capital raising will preserve significant balance sheet capacity for IVE to pursue previously announced growth initiatives, including further organic initiatives (e.g. Lasoo e- Commerce market place), support further opportunistic ‘bolt-on’ and/or strategic acquisitions (e.g. in the adjacent packaging sector), and importantly will also strengthen and deepen IVE’s institutional shareholder base, increasing liquidity in the market for IVE shares.’’

Settlement of the New Shares and the Selldown Shares is expected to occur on Tuesday 27 September 2022, with allotment and normal trading on Wednesday 28 September 2022. The New Shares will rank equally with existing IVE shares. The New Shares are within IVE’s existing placement capacity under ASX Listing Rule 7.1 and accordingly, shareholder approval is not required.

IVE shares resumed normal trading on the ASX from market open on 20 September 2022.

Share purchase plan

IVE will also offer existing eligible shareholders, the opportunity to participate in a non- underwritten SPP, to raise approximately $2m.

Under the SPP, eligible IVE shareholders, being shareholders with a registered address in Australia or New Zealand on IVE’s register as at 7.00pm (Sydney time) on Friday, 16 September;  and who are not in the United States or acting for the account or benefit of any person in the United States, will have the opportunity to apply for up to A$30,000 of new shares without incurring brokerage or transaction costs.

Full details of the SPP will be set out in the SPP offer booklet, which is expected to be released to the ASX and dispatched to eligible shareholders on Thursday 29 September 2022.