Retailer TFG said on Tuesday it had raised R2.5bn through an accelerated bookbuild process.
The funds raised will go towards the recent acquisition of Australia-based Retail Apparel Group (RAG).
TFG is the latest South African retail group to enter the Australian market, following in the footsteps of Woolworths, which has a significant presence there after acquiring David Jones a few years ago.
RAG operates 400 stores trading under five brands: Tarocash, yd, Connor, Johnny Bigg and Rockwear.
TFG will issue 17,241,380 ordinary shares to qualifying investors at R145 per share, which represents a 0.9% premium to the 30-day volume-weighted average price of R143.68 as at July 31.
The total value of the RAG deal is about R3bn.