CASH RAISING
Dawn rights offer a big discount
Struggling building materials specialist pitches the price of its proposed R350m rights offer at a significant discount to the market price and net asset value
Distribution and Warehousing Network (Dawn), the struggling building materials specialist, has pitched the price of its proposed R350m rights offer at a significant discount to the market price and net asset value (NAV). On Thursday, Dawn confirmed the rights offer shares would be priced at 100c per share. This is well off Tuesday’s closing price on the JSE of 210c and substantially lower than the last stated tangible NAV of close to 250c per share. Dawn indicated that major shareholders Coronation Asset Management and Ukhamba Holdings (an empowerment associate of mobility conglomerate Imperial Holdings) would follow their respective rights to the tune of R100m and R49m. An interesting twist to proceedings sees "deep value" investment specialist RECM & Calibre (RACP) emerge as the underwriter for the rights offer. RACP will underwrite the offer to a maximum of R210m. "We met with management, and got the impression that the company is now on the right course. They need time, though, ...
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