Ryman capital raising surprises market amidst earnings season

The S&P/NZX 50 index rose just 8.7 points, or 0.0.7%, to 12,083.12. Turnover was $172.1m.

Ryman will sell 180.5m new shares, which will increase the shares on issue by more than a third. Investors will be entitled to buy one new share for every 2.81 shares held, priced at $5 per share, a 21.9% discount to Tuesday’s close at $6.40.

“It’s certainly good news for the market,” Hamilton Hindin Greene investment adviser Grant Davies said. “And one of the larger capital raises we've seen on the NZX.”

The capital raising is the biggest since Air NZ’s in March 2022 when the airline raised $1.2 billion of new equity.