Capital raises are coming – but will the price be right?

By: Richard Stubbs

As a result of the severe economic impact from Covid-19, we expect numerous companies will need to raise capital in the near-term.

Potentially these will offer up some fantastic long-term investment opportunities.

This process has already started. Below is a list of some of the NZX and ASX capital raisings so far.

• Carbon Revolution 40% discount. Raised $28 million, market cap $170 million
• oOh!Media 37% discount. Raised $167 million, market cap $155 million
• Cochlear 16.7% discount. Raised $880 million, market cap $12 billion
• Kathmandu 51% discount. Raised NZ$207 million, market cap $289 million
• Webjet 55% discount. Raised $346 million, market cap $509 million
• IDP Education 7.9% discount. Raised $225 million, market cap $2.9 billion
• NEXTDC 15% discount. Raised $672 million, market cap $3.1 billion
• Flight Centre 27.3% discount. Raised $700 million, market cap $1 billion 
• Auckland Airport 7.5% discount. Raised $1.2 billion, market cap $6.1 billion
• Reece 12.5% discount. Raised $600 million, market cap $4.87 billion
• Southern Cross Media 20% discount. Raised $170 million, market cap $88 million
• Shopping Centres Australia 8.5% discount. Raised $300 million, market cap $2.2 billion
• Oil Search 23% discount. Raised US$700 million, market cap $4.2 billion
• Megaport 8.9% discount. Raised $50 million, market cap $1.49 billion
• QBE Insurance 9.4% discount. Raised $1.2 billion, market cap $11.9 billion
• Centuria 5.1% discount. Raised $140 million, market cap $960 million
• InvoCare 7.8% discount. Raised A$200 million, market cap $1.3 billion
• EOS 17.4% discount. Raised A$134 million, market cap $650 million
• Vista Group 25% discount. Raised $65 million, market cap $233 million
• Bapcor 8.5% discount. Raised $210 million, market cap $1.4 billion