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Wellard is the nation's largest live export business.

Wellard taps investors for $52 million

Loss-making livestock exporter Wellard is undertaking a share placement and entitlement offer as part of a $52 million capital raising it hopes will allow it to exploit a predicted improvement in trading conditions.

The firm, which in March cut its first-half loss by 25 per cent but was still $18 million in the red, on Monday said the $6 million placement, $19.7 million entitlement offer and $26 million capital notes issue were necessary following an extended period of reduced margins and cash flow.

"As we expect an improvement in cattle supply over time, we need to be ready to capitalise on our competitive advantages in the marketplace if and when this eventuates." chief executive Mauro Balzarini said in a statement.

Wellard said it would spend $2.8 million to buy the 50 per cent of Chinese joint venture company Wellao Agricultural Co it does not already own, with the rest of the money used to bolser working capital

Wellao - a 50-50 joint venture with Chinese-owned Fulida Group - plans to build two feedlots and an abattoir to process imported Australian cattle.

The placement of 25 million new shares will be priced at 24 cents per security, with the fully underwritten one-for-four entitlement offer priced at 18.5 cents, representing a 24 per cent discount to the 15-day average trading price.

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BNIQ sponsored byCBH Group

Wellard (WLD)

Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 29/12/17

1 year TSR5 year TSR
260thTox Free Solutions39%6%
424thUnited Overseas Australia7%15%
446thMACA3%8%
657thWellard-34%0%
696 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

22/09/16
$0 Sold
Total value as at the date of the transaction
Source: Morningstar

Revenue

11th↑MACA$520.3m
12th↑Tox Free Solutions$498.1m
13th-Wellard$497.9m
14th↓Premiere Eastern Energy$457.0m
15th↓United Overseas Australia$425.5m
232 listed industrial companies ranked by revenue.
Source: Morningstar

Remuneration from Wellard

5thScot Braithwaite$4.158m
78thMauro Balzarini$906k
Ranked by total remuneration from all listed WA companies

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