Fletcher Building’s debt-driven capital raise: shareholders face dilution without participation

Incoming Fletcher Building managing director Andrew Reding is now presiding over a capital raise he would not have supported at NZSA. (Image: NZSA)

Rebecca Stevenson

Wed, 25 Sep 2024

The New Zealand Shareholders Association says Fletcher Building’s $700 million capital raise is unfair to retail shareholders, and those who don’t participate will lose money. The struggling building giant announced on Monday that it was raising capital and was seeking $700m to mostly pay debt. The NZ Exchange (NZX) and Australian Securities Exchange-listed (ASX) conglomerate said the raise was fully underwritten with a $282m institutional placement and a $418m pro-rata entitlement offer. The raise is an accelerated n...

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