Book covered for Johns Lyng’s $65m raise, pricing to follow
Johns Lyng Group’s $65 million cash call to bankroll acquisitions was met with strong investor demand on Wednesday morning, with its broker JPMorgan mailing out a book-covered message an hour after launch.
Scott Didier has ordered a $65 million raising to build Johns Lyng’s strata services business. Paul Jones
The book message hit right before Johns Lyng boss Scott Didier began an investor briefing at 10:30am to sell the raising to investors.
Obviously, fundies haven’t needed convincing. From here, JPMorgan would be trying to narrow the already-tight discount. The placement is being run as a variable price bookbuild with a $5 to $5.20 a share range, which would be a 4.2 per cent to 7.9 per cent discount to the last close.
Fund managers have been told to expect pricing around midday. Johns Lyng is expected to post results of the raise on ASX on Thursday.
The proceeds would fund acquisitions of Smoke Alarms Australia and Link Fire Holdings, which the company estimates would be 5 per cent EPS accretive and a strategic fit for its strata management business.
Street Talk revealed the raising on Wednesday morning.
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