Wellard calls on underwriters after $9.4m shortfall

The major shareholders in Wellard, including China's Fulida Group Holdings and local agribusiness Heytesbury, are expected to lift their stake in the livestock exporter after a big shortfall from its rights issue.

Wellard was aiming to raise $19.7 million through a rights issue pitched at 18.5 cents per share.

It disclosed today that acceptances came to $10.5 million, leaving the balance to be taken up by underwriters.

Fulida, which currently has a 19.9 per cent shareholding, has agreed to take up 60 per cent of the shortfall.

Paul Holmes a Court’s Heytesbury, which this year acquitted an 8.9 per cent stake in Wellard, has agreed to take up 20 per cent of the shortfall.

Institutional investors Tradeinvest Asset Management and Black Crane will take up the balance between them.

Managing director Mauro Balzarini thanked those shareholders who supported the rights issue.

“The company gave all shareholders equal chance to participate, and we were happy to enjoy the strong support of our underwriters,” Mr Balzarini said in a statement.

Wellard shares were up slightly to 19.5 cents today.

The rights issue was part of a $52 million capital raising that also included a $6 million placement and $26.3 million in convertible notes.