Stor-Age raises R585m, albeit at a discount to its share price
Demand for the new shares in JSE-listed self-storage group Stor-Age was so strong it raised R235m more than it thought would when it issued 46.24-million shares on Tuesday. The group was hoping to raise R350m but ended up with R585m. The cash was procured at a discount to its share price, however, indicating that investors are prepared to buy into SA specialised funds, despite the perceived extra risk in a slow-growing economy. This is the fourth time in the past two years Stor-Age has raised capital by issuing new shares. In September 2018 it was for R400m. Prior to that, it turned to the capital markets for R400m in February 2017, and another R1.3bn in October that year. Its latest efforts follow an announcement of plans to expand its business through acquisitions in the UK self-storage market. “The proceeds of the capital raise will be used, in part, to acquire existing trading properties in the UK, fund new development sites in SA, and to strengthen our overall balance sheet pos...
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