GDG Secures $233.3M Institutional Backing for Major Evidentia Acquisition
Generation Development Group has successfully closed its institutional equity raising, securing $233.3 million to fund the strategic acquisition of Evidentia Group Holdings. Strong investor demand underscores confidence in GDG’s growth trajectory.
- Institutional offer raises approximately $233.3 million
- Equity raising fully underwritten by Jefferies and MA Moelis
- Funds to support $244.9 million upfront cash acquisition of Evidentia
- Institutional placement priced at $4.15 per share, a 10.8% discount
- Retail entitlement offer to open February 14, 2025
Institutional Offer Completion Signals Strong Market Confidence
Generation Development Group Limited (ASX: GDG) has announced the successful completion of the institutional component of its recent equity raising, securing approximately $233.3 million. This capital injection is earmarked primarily to fund the acquisition of Evidentia Group Holdings Pty Ltd for an upfront cash consideration of $244.9 million, alongside associated transaction and synergy implementation costs.
The equity raising comprised a fully underwritten institutional placement and an institutional entitlement offer, both managed by joint lead managers and underwriters Jefferies (Australia) Pty Ltd and MA Moelis Australia Advisory Pty Ltd. The institutional placement alone raised about $114.4 million through the issuance of 27.6 million new shares at an offer price of $4.15 per share, representing a 10.8% discount to GDG’s last traded price prior to announcement.
Strong Institutional Demand and Strategic Positioning
Investor appetite for the placement significantly exceeded available shares, reflecting robust confidence from both existing and new institutional shareholders. The institutional entitlement offer also saw a healthy take-up rate of approximately 68%, with remaining entitlements allocated through a shortfall bookbuild.
GDG’s CEO, Grant Hackett OAM, expressed satisfaction with the outcome, highlighting the strong support as a validation of the company’s strategic direction. The acquisition of Evidentia is positioned as a transformative step, expected to enhance GDG’s market footprint and accelerate growth initiatives.
Retail Entitlement Offer to Follow
The retail component of the equity raising is scheduled to open on February 14, 2025, offering eligible retail shareholders the opportunity to subscribe for new shares at the same offer price. This retail entitlement offer will allow shareholders to maintain their proportional ownership and participate in GDG’s next growth phase.
Settlement of the institutional shares is anticipated on February 14, with new shares commencing trading on the ASX from February 17. The company has emphasized that new shares issued will rank equally with existing shares, ensuring parity for all shareholders.
Looking Ahead
While the acquisition and capital raise mark significant milestones, the integration of Evidentia and the realisation of anticipated synergies remain critical to delivering shareholder value. Market participants will be watching closely how GDG navigates this next chapter, balancing growth ambitions with execution risks inherent in large-scale acquisitions.
Bottom Line?
GDG’s successful institutional raise sets the stage for a pivotal acquisition, but integration execution will be key to sustaining momentum.
Questions in the middle?
- How will GDG manage integration risks post-Evidentia acquisition?
- What is the expected timeline for synergy realisation and impact on earnings?
- How will the retail entitlement offer uptake influence GDG’s capital structure?
