Trans-Tasman dairy company, a2 Milk, has completed its $NZ40 million ($36.6 million) capital raising launched on Thursday, with the new shares set to hit the boards next week.
The offer was oversubscribed and will add an extra 58.8 million shares to the dairy company's register, priced at NZ68 cents each.
A2 will also tap investors for an extra $NZ3 million through a share purchase plan. The capital raising will help the company deepen its expansion across China, the US and Britain, after sales of its Platinum infant formula brand surged higher than expected and are on track to triple from last year.
A2 chief executive Geoff Babidge said the company was struggling to meet demand of its infant formula, saying he often heard from supermarkets, "the product's on the shelf for five minutes and then it's gone".
Yet the company's biggest shareholder, the Perich family-backed Freedom Foods, did not participate in the capital raising. A company spokeswoman said on Thursday chief executive Rory Macleod had been blindsided by the offer.
A2 had agreed to halt its capital raising plans after Freedom and US dairy giant Dean Foods lobbed a conditional takeover bid in June.
But the bid evaporated after the US regulator launched an insider trading investigation into Dean.
A2 engaged Goldman Sachs to complete the share sale offer, which it targeted at fund managers.
Mr Babidge said the capital raising was "an important step in strengthening the company's balance sheet, and will provide flexibility to execute on opportunities consistent with our growth strategy".
The new shares will begin trading on the NZ Stock Exchange and ASX on October 15.
