Kathmandu announced on Thursday that it had successfully completed the institutional entitlement offer and placement, raising gross proceeds of NZ$154 million.

It did so without the support of its biggest shareholder, Briscoe Group, which holds a 16 per cent stake in the outdoor retail chain.

Briscoe Group’s managing director Rod Duke said that while he wanted Kathmandu to succeed, his first priority was to ensure the financial stability of his own company.

“We are obviously supportive of the Kathmandu business and would like to see them successfully complete the equity raise to alleviate their balance sheet pressures,” Duke said.

“However, our immediate priority, as we like all New Zealanders face an unprecedented level of uncertainty surrounding the potential impact of COVID-19, is to our shareholders and employees to continue to ensure the strength of our own business both in the short-term and for the future.”

Briscoe Group last week cancelled its final dividend, saying it was in the best interest interest of the company to hold onto cash given the uncertainty over the impact of the lockdown in the coming weeks.

Outside of Briscoe Group, eligible institutional shareholders elected to take up 96 per cent of their entitlements.

Kathmandu is hoping to raise a total of A$201 million under a heavily discounted entitlement offer and placement. The retail component is set to open on Monday, April 6, and close at 5pm NZ time on Friday, April 17.

Eligible shareholders will be able to subscribe for 1.2 new shares for every 1 share they owned on April 3 for just 50 cents a share.