FFI Holdings Ltd (ASX: FFI) has announced a non-renounceable entitlement offer to raise approximately $11.0 million before costs. The offer, priced at $3.50 per share, represents a 13.6% discount to the last traded price of $4.05 on May 16, 2025, and a 15.5% discount to the reported net tangible assets per share of $4.14 as of December 31, 2024.
Under the offer, eligible shareholders can acquire two new shares for every seven held on the record date, May 23, 2025. The funds raised are earmarked for several strategic initiatives, including $5.1 million for investment property development costs, $1.5 million for the purchase of plant and equipment, and $2.0 million for debt repayment. An additional $2.3 million will be allocated to working capital, and $0.1 million will cover the costs associated with the entitlement offer.
The Entitlement Offer is open to shareholders with registered addresses in Australia or New Zealand. It’s important to note that the offer is non-renounceable, meaning entitlements cannot be traded or transferred, and shareholders who do not take up their entitlements will not receive any value for them.
The board of FFI Holdings encourages all shareholders to carefully consider the offer, with all directors intending to take up their full entitlements, representing approximately 36% of the company’s existing issued capital. While the announcement initially indicated the offer would be underwritten, a correction clarified that it is not. Key dates include the offer opening on May 27, 2025, and closing on June 17, 2025, with new shares expected to commence trading on June 24, 2025. The board retains the right to alter these dates.
