Oleochemical producer Symex Holdings (ASX:SYM) has announced a placement and entitlement offer to raise $24.4 million.
The company, which develops chemicals including oleine, stearine, glycerine and distilled fatty acids, said it had placed 11.8 million shares with institutional investors to raise $5 million.
The placement will be accompanied by a fully underwritten non-renounceable entitlement offer to raise $19.4 million.
The 9:4 entitlement offer will use the same price as the placement - $0.425 per share. The offer will run until May 10.
RBS Morgans Corporate and Taylor Collison will act as joint lead managers to the placement and underwriters to the entitlement offer.
Symex has announced it will use the proceeds for capital costs and to reduce debt, which has increased after the recent debt-funded $50 million acquisition from Sara Lee of the White King and Janola Brands of cleaning products.
Part of the proceeds will also go towards developing Symex' storage facilities to make room for the White King and Janola products.
Symex has forecast that the new acquisitions will generate annual gross sales of around $50 million in Australia and New Zealand, and net sales after rebates and promotional discounts of $36 million.
SYM shares fell 4.08% in Thursday's trading to $0.470, possibly indicating investor concern over share dilution.