The Pick n Pay Group has successfully completed its rights offer, raising R4 billion in capital with substantial market support.

The offer was oversubscribed by 106 percent, with total subscriptions exceeding R8 billion.

A total of 98,7 percent of shareholders exercised their rights, resulting in an additional R4,3 billion in excess applications.

The group noted in a statement that this strong response demonstrates shareholders' robust confidence in the group's turnaround strategy, leadership team, and future growth plans.

The funds raised will be allocated to debt reduction, balance sheet stabilisation, and investment in Pick n Pay's turnaround strategy, spearheaded by chief executive officer Sean Summers.

This recapitalisation is one of six strategic priorities aimed at revitalising and restoring profitability in the core Pick n Pay retail business while fostering growth in the thriving Boxer and Clothing segments.

The group emphasised that its priority, establishing new leadership and operational structures within Pick n Pay with the support of seasoned executives, has already been achieved. Pick n Pay is witnessing measurable improvements in its core retail business. With the successful rights offer, the initial step to recapitalise the business is complete.

The next phase, Boxer's IPO, is progressing well and is on track for a JSE listing towards the end of the year, the retailer noted.

CEO Sean Summers expressed satisfaction with the outcome: "We are really pleased with this result. The successful conclusion of the rights offer demonstrates the market's strong confidence in our iconic brand and turnaround strategy. -- Moneyweb.