“The share placement was heavily oversubscribed, with strong support for the offer from over 100 Australian and overseas institutional investors, a significant number of whom are existing shareholders in the company,” Arrow said.
The non-underwritten placement was undertaken by way of a book-build with the issue price of $2.35 at the top of the book-build pricing range and was jointly managed by Wilson HTM Corporate Finance and Citi.
It is planned that placement funds will settle on Tuesday July 24 with the shares listed on ASX with effect from the start of trading on Wednesday July 25.
Arrow will also be undertaking a share purchase plan for all shareholders registered on the Arrow share register on August 1 and will soon announce further details. Wilson HTM Corporate Finance and Citi are jointly underwriting the share purchase plan to the extent of $25 million.
The proceeds of the combined Share Placement and Share Purchase Plan will raise a minimum of $150 million prior to offer costs.
Arrow will used the funds to continue exploration, appraisal and development in its Australian CSM acreage; to develop gas export options, including its planned 1 million tonnes per annum LNG project in Gladstone, Queensland; and to develop international assets in key Asian growth markets with leading in-country development partners.
Arrow is aiming for proven and probable (2P) reserves of 1550 petajoules by the end of the 2008 financial year and 5000PJ by the end of the 2012 financial year.