Sun International shareholders have applied for 94.52% of the shares that were on offer as the hotel group seeks to raise capital to stay afloat during the Covid-19 pandemic, which has decimated the tourism and hospitality sector in South Africa.
The company, which owns iconic hotels like the Sun City Resort, announced on Tuesday evening that it received applications for over R1.1 billion of the rights offer shares.
The company was looking to raise R1.2 billion by issuing just over 127 million ordinary Sun International shares. It offered the shares at R9.44 per share, a 25% discount on the 30-day average price at which the company traded on the JSE when the offer was made.
Sun International said the underwriters to the rights offer would also take up shares.
Other hotel groups such as City Lodge have also gone the rights offer route to cope with losses suffered as a result of the pandemic. In City Lodge's case, the rights offer is the first equity capital raise since the company listed on the JSE in 1992.