Nicheliving Holdings Ltd. incorporated a minimum subscription clause into its revised IPO prospectus, which stipulates that its listing on the Australian stock exchange depends upon its ability to raise at least A$5.7 million within a given time.
The company will offer 11.4 million shares at 50 cents apiece, with the goal of reaching the target amount within four months after Dec. 7, according to the revised prospectus. If unsuccessful, Nicheliving said it will not issue any shares and will refund investors their application fee, excluding interest.
As of Dec. 7, the company managed to raise A$169,000 following the receipt of 338,000 applications. The company noted in its revised prospectus that it will not accept any oversubscriptions.
Proceeds from the IPO, scheduled to close Feb. 16, 2018, will be used to repay the company's debt, for investment in development projects and for general working expenditures, among other things.
Earlier, the Western Australian company sought to raise as much as A$12.0 million from the issue of 24 million shares upon its ASX debut, which was initially set for Dec. 6.
The replacement prospectus was also filed to include the company's plan to issue 30 million shares to an investor that filed a roughly A$21.5 million claim against the company. Jetwin Investments Pty. Ltd., which filed the lawsuit with the Supreme Court of Western Australia, will receive a roughly 18.00% stake in exchange for the transfer of its interest in certain special purpose vehicles to Nicheliving.
Since its establishment in 2002, Nicheliving has managed and/or constructed 40 residential developments in Western Australia. Currently, the company has a residential portfolio valued at more than A$400 million.
CPS Capital Group Pty. Ltd. is acting as the lead manager of the IPO.
