Last Friday oOh!Media went into a trading halt following a significant drop in share prices.
As with many businesses, the OOH company’s share price has taken a severe beating amid the CV-19 pandemic.
At the time, it was understood oOh! was considering capital raising to reduce its debt after the media company’s shares have been steadily sold off in the past month amid fluctuating economic conditions. oOh! had $355 million net debt at the end of last year.
And now, as reported on the AFR, the outdoor media company is putting forward discounted equity raising which would see its share more than double on issue.
It is understood over the weekend oOh! and its bankers at Macquarie Capital building support for a $167 million equity raising at 53c a share. This is a 37 per cent discount to the last close, and a 20 per cent discount to the theoretical ex-rights price.
According to the AFR, the deal put forward is split into a $39 million placement and $128 million entitlement offer.
The deal would see the outdoor play increase its total shares by 130 per cent by issuing 315 million new shares.
The discount coupled with the number of shares would see oOh! head towards recapitalisation.
Earlier this week, the oOh! withdrew its earnings guidance for the year amid uncertain market conditions around COVID-19.
Last week, an oOh!Media spokesperson told B&T the trading halt reflects discussions the company was having with its major shareholders.
At the time, the spokesperson stressed that capital raising is an option, but not the only option.