Macarthur completes placement

Macarthur Coal has completed the institutional placement of shares to raise $190 million.

Macarthur Coal has successfully completed the institutional placement of shares to raise $190 million, the company said in an announcement to the Australian Securities Exchange.

According to Macarthur, the placement was oversubscribed, with a strong demand for the shares, which were priced at a 9.4% discount of $6.00, coming from new institutional investors.

The company yesterday announced that it would be raising the money in order to fund a planned doubling of its overall coal production and to further development of its Middlemount Project in central Queensland.

“We are extremely pleased with the success of the institutional placement and the fact that it was significantly oversubscribed indicates strong support for Macarthur Coal and its growth strategy,” Macarthur managing director and chief executive Nicole Hollows said.

“The raising will also strengthen Macarthur Coal’s financial position, increasing flexibility with refinancing over the next year.”

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.