Billabong International Ltd said it has raised Australia $291 million (U.S. $231.7mm) from institutions and retail investors in a rights issue. The oversubscribed retail rights issue raised $61 million ($48.6mm), and the company raised around $230 million ($183.1mm) from institutions.

The proceeds from the entitlement offer will improve the company's balance sheet and give it more flexibility, chairman Ted Kunkel said in a statement.

Under the entitlement offer, eligible shareholders could subscribe for two new Billabong ordinary shares for every eleven existing ordinary shares they owned at a price of Australia $7.50 per new share.


An oversubscription from retail shareholders will prompt Billabong to cap the number of new shares allocated to shareholders to 15,000 new shares or three times that shareholder's entitlement under the rights issue, Billabong said.


The share allotment will be made by June 19 and the new shares will commence trading on the Australian Securities Exchange on June 22.


The company's brands include Billabong, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Nixon, Xcel, Tigerlily, Sector 9 and DaKine.