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Nuplex - Source: Nuplex -
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A $22.8 million top-up placement for Nuplex may go ahead after the company's rights shares closed on Wednesday.
The rights issue announced by the resins maker two weeks ago started off slowly but had a flurry before closing.
Market analyst Scott Aucutt says the last minute rush shows demand remains for companies like Nuplex.
"It's probably considered that...at the level they were trading at, they represent quite good value. Certainly that's been born out by what occurred yesterday," he says.
According to the New Zealand Herald, shares closed up 4 cents to 25 cents on Wednesday as 1.16 million rights changed hands on the last day of the placement period.
Aucutt says a top-up placement available to the manager of the share issue may go ahead.
"I suspect given where the shares closed at 35 cents, given that the rights issue is at 23 cents, you'd expect that that top-up would occur," he says.
Last month Nuplex dropped its initial share placement with institutional investors to raise $100 million to pay down debt after a failure to agree on price.
It then launched a $132 million rights issue with a total of 577
million shares, at 23 cents each.
