On Tuesday, Dixy Group shareholders approved the placement of the company's additional share issue at a volume of 26 million shares, which equals nearly 30% of the retail chain's upsized charter capital.
We are positive about the company's decision to hold an SPO. Based on the current market valuations for Dixy Group, the company may draw nearly USD 286 million from the SPO. The retail chain could allocate these funds to opening new retail outlets and purchasing real-estate.
In line with our estimates, the fair value of Dixy Group is USD 15 per share, an upside of more than 37% to the current market valuation.
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