Ridley’s $300M Acquisition Hinges on $125M Capital Raise Completion
Ridley Corporation has successfully closed its retail entitlement offer, raising $26 million as part of a $125 million capital raise to fund its $300 million acquisition of Incitec Pivot’s fertiliser distribution business.
- Retail entitlement offer raises approximately $26 million
- Total capital raise reaches about $125 million including institutional placement
- Funds to partly finance $300 million acquisition of Incitec Pivot fertiliser distribution
- Retail take-up rate at 63% including top-up facility
- New shares expected to commence trading on ASX from 6 June 2025
Capital Raise Completion Marks Key Milestone
Ridley Corporation Limited (ASX – RIC) has announced the successful completion of the retail component of its entitlement offer, raising approximately $26 million. This retail tranche forms part of a broader capital raising effort that has secured around $125 million in total, including an institutional placement and institutional entitlement offer. The funds are earmarked to partly finance Ridley’s strategic acquisition of the Incitec Pivot fertiliser distribution business from Dyno Nobel Limited for $300 million.
Retail Entitlement Offer Details and Investor Response
The retail entitlement offer was conducted on a 1 for 7.43 pro-rata accelerated non-renounceable basis, closing on 30 May 2025. Eligible retail shareholders subscribed for approximately 6.9 million new shares, representing a 56% take-up rate. When combined with the Retail Top Up Facility, which accepted an additional 0.8 million shares, the total retail participation rose to about 63%. Shares not taken up under the retail offer, roughly 4.5 million, will be allocated to sub-underwriters, ensuring full subscription.
Strategic Acquisition and Market Implications
The capital raised will contribute to funding Ridley’s $300 million acquisition of the Incitec Pivot fertiliser distribution business, a move that significantly expands Ridley’s footprint in the agriculture sector. The purchase price remains subject to customary adjustments related to working capital and debt at completion, introducing some variability in the final transaction cost. This acquisition aligns with Ridley’s growth strategy, potentially enhancing its market position and operational scale in fertiliser distribution.
Next Steps and Share Trading
Settlement of the retail entitlement offer is expected on 5 June 2025, with new shares anticipated to be issued and commence trading on the ASX from 6 June 2025. Investors will be watching closely to gauge market reaction to the expanded capital base and the integration progress of the newly acquired business. The successful capital raise also reflects a solid vote of confidence from both institutional and retail shareholders in Ridley’s strategic direction.
Bottom Line?
Ridley’s capital raise success sets the stage for a transformative acquisition, but integration risks remain to be watched.
Questions in the middle?
- How will the acquisition impact Ridley’s earnings and cash flow in the near term?
- What are the key risks associated with integrating the Incitec Pivot fertiliser distribution business?
- Will Ridley pursue further capital raising or debt financing to complete the acquisition?
