4 Mar 2014

Te Mahi Hou drives capital raising

7:38 am on 4 March 2014

New Zealand Refining's $48 million-plus capital raising is driven by the Te Mahi Hou expansion of the refinery, the company says.

Marsden Point refinery.

Marsden Point refinery. Photo: PHOTO NZ

New Zealand Refining raised the $48 million from professional investors at $1.68 per share after the market closed on Friday - when the shares closed at $1.75.

The company plans to raise at least another $5 million from its retail shareholders who are being offered up to 15,000 shares each.

First NZ Capital Securities, which managed the placement, has underwritten the retail offer to $5 million.

Chief executive Sjoerd Post said even though New Zealand Refining expected its current debt funding would be enough to meet its needs, the additional capital would give the company greater flexibility. The company believed it was prudent to raise the extra capital.

Mr Post said the $365 million Te Mahi Hou refinery expansion was on time and on budget.

"This is not a question of project management going on. This is simply times are slightly more difficult than we anticipated at the time we went into the project," he said.

The company was nearly 73 percent owned by the four big petrol companies before the share issue. None of them participated in the capital raising.