Investors back Cochlear through new placement

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Cochlear (ASX:COH) has completed an $880 million placement saying demand was high to the point it was fully allocated to existing institutional shareholders. 

The company increased the size of the placement from the expected $800 announced to the market at launch.

It said the placement, which followed the company's recent decision to withdraw its guidance for financial year 2020 in response to the impact of COVID-19, will be used to enhance its balance sheet and financial flexibility, support the business during the current uncertainty and materially increase liquidity and reduce future net debt.  

According to Chairman Rick Holliday-Smith, “We are grateful and delighted with the strong support for the Placement shown by our shareholders, with many having been shareholders for many years. We now have a fortified balance sheet and are well positioned to emerge from this global health pandemic in a strong competitive position.”

The capital raise included 6.3 million new fully paid ordinary shares at a price of $140 per share.