MinterEllison is pleased to advise long standing client BWX Limited (BWX) on its fully underwritten institutional placement and entitlement offer to raise a total of approximately $23.2 million.

BWX is an ASX listed beauty and wellbeing business.

The entitlement offer comprises a 1 for 10 traditional pro rata non-renounceable offer at an issue price of $0.60 per BWX share.

Part of the funds raised will be used to repay a portion of BWX's bank debt. The balance of the proceeds will be used for working capital to support and fund the operations of the business and to accelerate debt reduction towards more conservative leverage ratios.
The capital raising was announced by BWX on Tuesday, 28 June 2022. The entitlement offer opened on Monday, 4 July 2022 and is scheduled to close on Wednesday, 13 July 2022.

Bell Potter Securities Limited (Bell Potter) acted as lead manager and underwriter to the Capital Raising. Two of BWX's largest shareholders, Bangarra Group (Bennelong) and Tattarang Ventures (an entity controlled by Andrew ‘Twiggy’ Forrest) have also agreed to participate in the capital raising and sub-underwrite portions of the entitlement offer.

MinterEllison is pleased to support BWX throughout its capital raising, which is taking place during a challenging time for equity capital markets.

The deal was announced on a truncated timeline before 30 June 2022 with a number of transaction complexities.

"We are pleased to continue our ongoing support of BWX as they raise capital in a volatile ECM environment," said Lead Partner Sudharshan Senathirajah.

"The substantial support offered by their largest shareholders indicates BWX's positive long term prospects as they weather the challenges in the market. Despite the conditions, we are still seeing ongoing ECM activity in Australia," he added.

Mr Senathirajah led the deal alongside Partner Nick Broome, with support from across MinterEllison's Transaction Solutions team.

Further activity in equity capital markets

In a further example of activity in the market, MinterEllison has also recently advised Electro Optics Systems Holdings Limited on its equity capital raising of up to A$17 million. This comprised a A$15 million non-underwritten institutional placement and a share purchase plan of up to A$2 million.

MinterEllison assisted on all aspects of the transaction, including offer structuring, disclosure, due diligence and regulatory filings.