EOH raises R600 million from shareholders

EOH has raised R500 million from shareholders through a rights offer in which it issued 384,615,384 new shares for R1.30 each.

This is in addition to the R100 million the company raised through a specific issue of shares to a subsidiary Lebashe Investment Group, which was issued 76,923,076 at R1.30 each.

The rights offer closed at noon on Friday, 10 February 2023, and EOH said it was significantly oversubscribed.

Accordingly, underwriters Aeon, Anchor Capital, and Visio were not required to subscribe for any rights offer shares in terms of their underwriting commitments.

“Today EOH celebrates a watershed moment, bringing to a close a long and difficult chapter in our history. We are delighted that in this difficult environment our rights issue has been oversubscribed,” said EOH CEO Stephen van Coller.

“The vote of confidence in the EOH business case and the strategic progress the board and management have made is testament to our relevance and importance in a South African and global context.”

Van Coller said over 90% of shareholders followed their rights, and excess applications totalled R220 million.

“If one includes the R350 million of underwriting commitments secured, the rights offer secured demand for over 200% of the offer,” he said.

“I cannot adequately express how thankful I am to our staff, customers, lenders and suppliers for their unwavering support and patience during some uncertain times.”

Van Coller said the capital raise ushers in a new era for EOH.

“Our optimised capital structure gives us the ability to invest in our growth knowing that our strategy for EOH 2.0 has the wholehearted backing of our shareholders and lenders.”

EOH’s share price was trading at R1.71 at the time of writing and has been relatively flat over the past few days.

However, it is 55% down since the start of the year, when it traded at around R3.80.

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EOH raises R600 million from shareholders