Vision Eye Institute seeks $27.2m in capital raising from investors

The aim of the capital raising is to strengthen the company’s balance sheet by providing working capital and to reduce bank debt by $15 million.
According to the company, it has scope to invest in growth and the capital raising provides a pathway to potential dividend payments (no dividends have been paid to shareholders for several years).
Guidance for 2012-13 earnings before interest, tax, depreciation and amortisation have been reaffirmed by the company at $24-25 million.
The capital raising is at 34c a share, consisting of a $4.4 million placent to institutional and ‘sophisticated’ investors and a two-for-three non-renounceable entitlent to eligible shareholders of about $22.8 million.
The offer price of 34c per share represents a 10.5-per-cent discount on the closing price of 38c on 6 Decber, a 15.2-per-cent discount on the 30-day volume weighted average price of 41c and a 5.8-per-cent discount on the theoretical ex-rights price of 36c.
Bell Potter Securities limited is acting as sole lead manager and underwriter to the placent and entitlent offer.
In a rational for the offer, the company said the capital raising will accelerate debt reduction and reduce interest expenses more rapidly and that it also enables the company to consider growth initiatives earlier, as well as enabling potential reintroduction of dividend payments sooner.