Kagara raises $91m from institutions

Miner Kagara has locked in $91 million of its $262 million capital raising, receiving strong support from institutional shareholders.

The miner has completed an accelerated one-for-one entitlement offer, which raised a better than expected $91 million.

The institutional raising was fully underwritten by Macquarie Capital Advisers and Southern Cross Equities.

Kagara yesterday revealed plans of its capital raising, with the institutional component expected to raise $85 million.

The retail side of the offer will open early next week, which is expected to raise $86 million. The offer is partially underwritten to around $37 million.

Kagara's capital raising efforts also includes a $23 million private placement and a $62.5 million placement to Chinese entity Guandong Foreign Trade Group.

Following completion of the capital raising, Guandong will emerge with a 15 per cent stake in Kagara and has the option to increase it to 19.9 per cent.