Australian Agricultural completes $56m placement

Australian Agricultural Company (ASX:AAC) has completed a $56.3 million institutional placement.

The beef producer said it had placed over 39.6 million shares at $1.42 per share, an 8.4% discount to the AAC closing price prior to announcing the placement. The new shares began trading on Tuesday.

Australian Agricultural has announced plans to put the proceeds towards pursuing growth while maintaining its target of leverage levels of less than 40%.

UBS Australia was the sole underwriter in the oversubscribed placement, and acted along with LINWAR Securities as joint lead manager.

Australian Agricultural will now make a share purchase plan offer at the same price. Existing shareholders may apply for up to $15,000 worth of new shares.

The not-underwritten placement will be capped at $30 million, and applications will be scaled back if this sum is exceeded.

AAC shares fell 6.45% in Tuesday's trading to $1.450. The shares are trading at their lowest point since early January, after spending nearly all of February through April above $1.600.