Information and communications technology services company EOH has welcomed the "overwhelming support" from existing shareholders that enabled it to raise R500-million in a rights offer on February 10.

With the additional R100-million specific issue of shares from its long-term strategic partner Lebashe Investment group, EOH increased the successful capital raise to R600-million.

Proceeds from the capital raise will be used to settle the majority of EOH’s bridge facility. This will allow for a debt restructuring at lower interest rates and provide the company with the ability to make significant investments in the growth of the business.

“Today EOH celebrates a watershed moment, as a long and difficult chapter has finally closed. We are hugely encouraged that, in this difficult environment, our rights issue has been oversubscribed. This incredible vote of confidence from our shareholders in the EOH of tomorrow, and the significant strategic progress the board and management have made, is proof that EOH is investable again,” says EOH Group CEO Stephen van Coller.

“More than 91% of shareholders followed their rights, with requests for additional allocations of R220-million. This along with the R350-million underwriting commitments means a total demand of over 200% for the offer. I can’t adequately express how thankful I am to our staff, clients, lenders and suppliers for their unwavering support and patience during some uncertain times.

“This incredibly successful rights issue in a very tough economic climate welcomes a new era for EOH, with our now optimised capital structure giving us the ability to invest in our growth, knowing that our strategy for EOH 2.0 has the whole-hearted backing of all our shareholders and lenders,” he adds.

The offer was oversubscribed by 35.8%, which means the underwriters were not required to subscribe for any rights offer shares. Total demand, including the underwriters’ commitments, for the R500-million shares offered was R1.03-billion, the company notes.