APN News & Media has raised $160 million from institutional shareholders to help reduce its debt and fund the proposed demerger of its New Zealand operations.
The newspaper and radio group said 95 per cent of the new shares offered were taken up, and a shortfall bookbuild attracted strong demand.
Retail shareholders will now be offered one new share for every three they own in the second stage of APN's capital raising, which is expected to be completed by early June.
The move comes as APN plans to demerge its NZME business - which publishes the New Zealand Herald and has a number of radio stations - and list it on the New Zealand and Australian stock exchanges.
An exit from New Zealand would allow APN to focus on its other businesses, which include the KIIS radio network and outdoor advertising.
It continues to work on the possible the sale of its Australian Regional Media business, which has more than 100 regional newspapers and websites in Queensland and NSW.
The company is also now in talks with staunch rival Fairfax Media about merging their New Zealand operations by the end of 2016.
The two companies have said their New Zealand businesses are largely complementary and would, if combined, offer depth of news, sport and entertainment across print, digital and radio.
APN's demerger plan will be pursued irrespective of whether the merger with Fairfax's NZ operations goes ahead.
Shareholders are scheduled to vote on the demerger and a share consolidation on June 16.
APN shares resumed trading on Friday after a four-day trading halt, and closed at 70 cents, up from 63 cents on May 9.
