It isn't just Qantas Airways Limited (ASX: QAN) that has completed its share purchase plan on Monday. Also completing its respective share purchase plan has been personal care products company, BWX Ltd (ASX: BWX).
But unlike Qantas, which was only able to raise $71.7 million of its targeted $500 million, BWX's share purchase plan was in great demand with retail investors.
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What did BWX announce?
This afternoon the company behind the Sukin skincare brand announced that its share purchase plan was strongly supported by eligible shareholders.
So much so, it was oversubscribed and BWX received applications totalling approximately $30.3 million at an issue price of $3.40 per new share. This represents a discount of 19% to the current BWX share price, which is up 1% to $4.19 this afternoon.
This was over triple the original target of $10 million. In light of this strong demand, the company elected to increase its share purchase plan slightly to $12 million.
Combined with its $40 million institutional placement, which was undertaken at the same price, this means BWX has raised a total of $52 million.
Why did BWX raise funds?
In contrast to Qantas, these funds were not raised to help the company navigate the coronavirus pandemic. In fact, BWX has performed in line with expectations in FY 2020 and delivered revenue growth of 25% and EBITDA growth of 30%.
These funds were raised to fund the development and construction of a new manufacturing facility to support its future growth.
Last month, BWX's Chief Operations Officer, Rory Gration spoke about the new facility and the impact it is expected to have on its future growth.
He said: "This future world-class facility is expected to significantly boost BWX's in-house manufacturing capacity, capability and competitive advantage; provide up-skilling opportunities for our team; and enhance the ways in which we serve our retail partners, customers, and consumers all over the world."
"Importantly, this initiative supports local manufacturing and Australian jobs at a time when the retail landscape is being heavily disrupted, and as more companies look to future-proof their business models. As part of this significant investment in Australian manufacturing, we are working with the Government to look to broaden the scope and speed of how we implement this exciting project," he added.
