Centric raises $100 million through rights issue

Company still plans IPO

By Wouter Klijn
Thu 02 Oct 2008

Despite the market uncertainty, Centric Wealth has managed to raise capital to retire debt and fund future growth.

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Centric Wealth has raised A$100 million through a rights issue, which is open to existing shareholders and is fully underwritten by Champ Private Equity.

"The capital that is raised is first of all to strengthen our balance sheet, to retire some short-term debt," Centric chief executive Michael Pillemer said.

Centric, which has A$5.5 billion in funds under advice, will also look at further acquisitions to complement the existing operations.

Pillemer said the rights issue is subject to shareholder approval and an AGM will be held within the next three weeks, but he could not say how large an interest in the company the A$100 million represents.

"I cannot go into any valuation details. I first have to discuss that with the shareholders."

Centric initially planned a stock market listing at the end of 2007, but the deteriorating market conditions made the firm reconsider.

Although Pillemer says an initial public offering (IPO) is still the firm's ambition, it is more likely to eventuate in the medium to long-term.

"We have not changed our overall objective of raising capital, the only thing that is changed is how."

It is likely that in the event of a listing, Champ will sell any interest it might still hold in the company.

"I imagine they would look at an exit," he said.

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