Reliance Worldwide Corporation Ltd (ASX:RWC) share price rockets to a 52-week high

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The Reliance Worldwide Corporation Ltd (ASX:RWC) share price has skyrocketed on Monday morning, zooming to a 52-week high of $5.99 just after market open, to retreat slightly to $5.37 just before 11am AEST, still trading 17.76 per cent higher for the session.

Shares in the plumbing and water control systems company were placed in a trading halt on Thursday after it announced that it had entered into an unconditional agreement to acquire all of the issued shares of John Guest Holdings Limited, which was to be supported by a major capital raising of 1.1 billion, including a A$945 million institutional component.

The company announced this morning that it has successfully completed its institutional entitlement offer, raising approximately $946 million at  the offer price of $4.15 per new share.

Support for the raising was strong, with existing shareholders taking up over 98% of the new shares available to them while the shortfall bookbuild was significantly oversubscribed with strong demand from both existing and new institutional investors.

Eligible retail shareholders will be given the opportunity to subscribe for 1 new share for every 1.98 Reliance shares held at the discounted price of $4.15 per new share.

Today’s move in the Reliance Worldwide share price comes on a flat day for the stock market. The S&P/ASX 200 Index opened slightly lower and is sitting down 23 points or 0.38 per cent to trade at 6009.80.

It has been a wonderful 12 months for shareholders in the company.

Over the past year the Reliance Worldwide Corporation Ltd share price has gained 56.9 per cent, compared to a gain of 4.48 per cent for the S&P/ASX 200 Index. The stock trades towards the top end of its 52 week range.

With a market capitalisation of $2.39 billion, Reliance Worldwide Corporation Ltd is the 139th largest company quoted on the ASX.

From a valuation perspective, Reliance Worldwide Corporation Ltd trades on a price to earnings (P/E) ratio of 33 times earnings.

Over the past 12 months the company has paid dividends of $0.065 per share. Reliance Worldwide Corporation Ltd shares trade on a dividend yield of 1.43 per cent. 

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Lauren Surplice is a keen follower of the stock market, investing in individual companies and funds. She follows the daily stock market news, covering the ASX stocks that are moving the markets. You can contact Lauren at laurens@thecapitalclub.com.au