Myer wanted $120 million from retail investors but couldn't even raise $4 million

The Myer Spring Fashion launch in Melbourne. Robert Prezioso/Getty Images

Myer’s retail part of its capital raising, to help fund a five-year turnaround strategy, has fallen well short of its $120 million expectations.

The fully underwritten 2-for-5 entitlement at $0.94 per share only attracted applications from retailer investors for 4 million shares. This raised just $3.76 million, or more than $116 million short. The institutional part of the offer raised about $99 million.

The whole raising had a target of $221 million. Myer shares closed yesterday at $0.865, more than eight cents below the entitlement price.

The proceeds will be used to reduce core debt and provide balance sheet flexibility to implement a new Myer strategy.

Myer said in a statement: “The resulting shortfall after the allocation of additional new shares under the retail entitlement offer will be allocated to the sub-underwriters.”

The underwriter is Goldman Sachs Australia.

Myer announced the capital raising at the start of the month after posting a 21.35% fall in profit to $77.5 million for the full year.

The department store is investing $600 million in a five year strategy to revitalise the business.

The aim is to deliver improved productivity, a re-energised range, in-store experience and market-leading omni-channel capability.

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