EOH 2.0 is here after successful rights issue

EOH CEO Stephen van Coller said the successful rights issue welcomes a new era for EOH, knowing that their strategy for EOH 2.0 has the backing of all their shareholders and lenders.

Last year, EOH announced its plan to raise R600 million through a R500 million rights issue and a R100 million BBBEE deal.

The proceeds will be used to settle the majority of EOH’s senior bridge facility, reducing interest payments by approximately R100 million per year.

On 13 February, EOH said its rights offer had been oversubscribed despite the current tough market conditions.

The company has successfully raised R500 million with overwhelming support from existing shareholders.

Given the success of the rights issue, the underwriters were not required to subscribe for any rights offer shares in terms of their underwriting commitments.

Total demand, including the underwriters’ commitments, for the R500 million shares offered, was R1.03 billion.

EOH will now be able to restructure its debt at lower interest rates and allow the company to make significant investments in the growth of the business.

Van Coller said the vote of confidence from their shareholders in the EOH of tomorrow is proof that the company is investable again.

“Over 91% of shareholders followed their rights, with requests for additional allocations of R220 million,” he said.

Van Coller added that the successful rights issue welcomes a new era for EOH, knowing that their strategy for EOH 2.0 has the backing of all their shareholders and lenders.

Results of the rights offer

The rights offer closed at 12:00 on Friday, 10 February 2023. The table below sets out the results of the rights offer.

Shares	Number of Rights offer shares	Percentage of Rights Offer Shares
Rights offer shares available for subscription	384 615 384	100.0%
Rights offer shares subscribed for	352 972 679	91.8%
Excess applications for rights offer shares received	169 256 773	44.0%
Rights offer shares allocated to excess applications	31 642 705	8.2%
Rights offer shares allocated to the underwriters	0	0.0%
Total rights offer shares subscribed for	522 229 452	135.8%