Mirvac Raising Capital
Stock
Mirvac (MGR) $3.10 as at 29/05/2019
Event
Shares in Australian owner & developer of real estate group Mirvac remain in a trading halt following the announcement of a $750m placement to the market today. The deal will be priced at $2.97, around a 4% discount to the last traded price, while MGR will simultaneously launch a share purchase plan for existing shareholders at raise $75m at $2.90/share.
Mirvac owns a number of office, industrial, residential and retail sites around Australia, and has seen profit explode over the past year. At the half year result to December, Mirvac’s operating profit climbed 39% on the back of strong performance in the Office and Industrial portfolio.
MGR has been trading near 10-year highs recently after a stellar run in which the share price has climbed nearly 40% this year to date – not a bad time to raise capital at all!
No one specific site has been flagged as the reason for the raise with the company noting it had a significant pipeline which has previously been disclosed to the market. The company has over $3b of commitments which has been fully funded, and the capital raising will open up capacity to fund additional projects.
Along with the announcement, Mirvac updated guidance for EPS of 17.1c, or nearer to the top of the previously guided range confirming the impressive performance continues. They expect to pay a 11.6c divided to round out the year.
Mirvac Group (MGR) Chart
Market Matters Take/Outlook
