Steinhoff raises $725m in accelerated bookbuild

JOHANNESBURG (Reuters) – South African furniture retailer Steinhoff said on Thursday it had raised 7.8 billion rand ($725 million) in an accelerated bookbuild as part of a drive to raise international funds ahead of a planned Frankfurt listing.

The company said the bookbuild was fully subscribed and 150,100,412 Steinhoff ordinary shares will be issued at 52 rand per ordinary share, a 6.8 percent discount to its 30-day volume weighted average price as of market close on Wednesday.

The funds raised will be paid to its investors in a combination of euros and U.S. dollars.

Steinhoff said on Wednesday it had proposed a rights issue of 350 million shares and this will be priced the same as the accelerated bookbuild. This values the rights issue at 18.2 billion rand.

Half of the company's existing shareholders have agreed to renounce their rights in order to allow it to raise international funds in preparation for the Frankfurt listing which will take place as soon as possible after its full-year results on September 9.

($1 = 10.7565 South African Rand)