Undersubscribed ARC Investments rights offer reflects investor discontent
A total 83% of shareholders will follow their rights after furore over management fees
African Rainbow Capital (ARC) has raised R750m in an undersubscribed rights offer, highlighting investor discontent over the fundraising effort and forcing its biggest shareholder and indirect owner, Patrice Motsepe, to take up the shortfall.
ARC published the results of the additional equity fundraising that closed on Friday in which 83.2% of shareholders elected to follow their rights. This will cause 226.8-million shares to be issued to existing investors at R2.75 per share.