Raptis Issues 198 Million New Shares at $0.01 in Fully Underwritten Capital Raise
Raptis Group Limited has completed a $225,000 private placement and launched a fully underwritten $1.75 million entitlement offer, aiming to expand its property management portfolio with a possible Broadbeach acquisition.
- Private placement of 22.5 million shares at $0.01 each raising $225,000
- One-for-one non-renounceable entitlement offer to raise up to $1.75 million
- Entitlement offer fully underwritten by placement investors GAS Asset Holdings and Hayman Developments
- Potential acquisition of Sterling Broadbeach management rights pending shareholder approval
- Shares on issue could more than double to 350.7 million post-raising
Capital Raising Completed and Underway
Raptis Group Limited (ASX: RPG) has successfully completed a private placement, issuing 22.5 million shares at $0.01 each to sophisticated investors GAS Asset Holdings Pty Ltd and Hayman Developments (QLD) Pty Ltd. This initial raise brought in $225,000 before costs and sets the stage for a larger equity raising via a one-for-one pro rata non-renounceable entitlement offer targeting approximately $1.75 million.
The entitlement offer shares will be issued at the same price as the placement, $0.01 per share, and are fully underwritten by the same two investors who participated in the placement. This underwriting arrangement ensures the company will raise the targeted funds regardless of existing shareholder participation, although the company anticipates some uptake from current shareholders.
Strategic Acquisition Plans
Proceeds from the combined capital raising are earmarked primarily for a potential acquisition of the management rights business of the Sterling Broadbeach residential development in Queensland. This asset, currently under construction, is expected to be acquired for between $1 million and $2 million, subject to shareholder approval and an independent expert's valuation. The acquisition would mark a significant expansion of Raptis Group's property management footprint on the Gold Coast.
Should the acquisition not proceed, the company intends to seek an alternative management rights business of similar value within the region, maintaining its strategic growth focus.
Implications for Shareholders and Capital Structure
The equity raising will substantially increase the company's shares on issue from approximately 152.8 million to a maximum of 350.7 million shares. The entitlement offer is non-renounceable, meaning shareholders who do not participate will see their ownership diluted without compensation for their unexercised entitlements.
Both underwriters currently hold about 6.4% each post-placement, but if shareholder participation in the entitlement offer is low, their stakes could rise to around 28.2% each, potentially shifting control dynamics within the company. However, the company expects reasonable shareholder participation to mitigate this effect.
Regulatory and Timetable Notes
The offer is made under section 708AA of the Corporations Act without a prospectus, and shareholder approval is not required for the entitlement offer. The timetable spans from May to June 2025, with key dates including the record date for entitlements on 23 May and the offer closing on 10 June.
Investors should note the forward-looking nature of the acquisition plans and the conditional status of the proposed purchase, which remains subject to shareholder approval and the outcome of an independent expert's report.
Bottom Line?
Raptis Group’s capital raise sets the stage for strategic growth but hinges on shareholder support and acquisition approval.
Questions in the middle?
- Will existing shareholders participate significantly in the entitlement offer to limit dilution?
- What will the independent expert conclude regarding the value of the Sterling Broadbeach management rights?
- Could the underwriters’ increased stakes influence company control or strategic direction?
