By Stuart Condie
SYDNEY–Bubs Australia Ltd. plans to raise 63 million Australian dollars (US$43.2 million) to support its growth initiatives including in the U.S., where the infant-formula manufacturer has secured a raft of supply contracts amid the country’s formula shortage.
Bubs on Tuesday said that it planned to issue about 121.2 million new shares. It aims to raise A$32.4 million via a placement to institutional investors and A$30.6 million via an accelerated entitlement offer, issuing shares on a 1-for-10.42 pro-rata basis.
The proceeds will support costs including marketing and employment in the U.S., where Bubs has secured agreements with stockists including Walmart Inc. Bubs also aims to build up inventory and to build a second high-speed canning line, tripling capacity at its facility in Deloraine, Tasmania.
Write to Stuart Condie at stuart.condie@wsj.com