Aveng’s share price halves on upcoming substantial dilution
The share price recovered later, with a company trading statement saying its headline loss per share for the year to end-June was less than in 2017
Aveng’s share price halved to 2c on Friday morning after it warned shareholders another substantial dilution is on its way.It subsequently recovered back to 4c, giving Aveng a market capitalisation of R214m.The group, which raised R493m in June by increasing its number of shares in issue to 5.4-billion by issuing nearly 5-billion rights issue shares at 10c each, said it intended converting R1.4bn worth of bonds into equity by issuing new shares also valued at 10c each.Besides the R493m from the rights issue, Aveng said it raised an additional R254m by selling properties. "The values achieved on these disposals were at or better than management expectations," the trading statement said.Aveng said it would pay its bondholders about R96m interest and repurchase R657m of its existing convertible bonds at 70% of their par value. This would be funded by raising R460m "through the issue of a new debt instrument".The remaining R1.4bn of its bonds would be exchanged for shares valued at 10c ...
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