Santos shares lift after cap raising

Investors in energy giant Santos have pushed its shares higher after it wrapped up its $2.5b capital raising.

Santos shares have lifted nearly two per cent after the energy giant wrapped up its $2.5 billion capital raising.

Santos tapped investors for about $585 million after only 57 per cent of the $1.33 billion rights issue entitlements for retail investors was taken up.

The retail shortfall bookbuild had a clearing price of $4.10, a 6.5 per cent premium to the $3.85 offer price.

Santos had placed its shares in a trading halt on Wednesday while it carried out the retail shortfall bookbuild.

The stock fell to an intra-day low of $3.95 when it resumed trade on Thursday and then climbed seven cents to close at $4.13.

The company announced plans in November to raise $3.5 billion through share and asset sales following a strategic review that was launched after it suffered an 82 per cent dive in first half profit.

It raised $1.17 billion from institutional investors before opening the offer up to retail investors.

"We are confident the Entitlement Offer, along with our other capital initiatives, will drive better returns for shareholders by substantially strengthening our financial position," executive chairman Peter Coates said on Thursday.

The company's shares have halved in value since May amid soft commodity prices.


Share

2 min read

Published

Updated

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world