Satellite connectivity provider Gilat has raised $100 million in an oversubscribed private placement.
The Israel-based company said it has secured commitments from Israeli institutional and accredited investors to purchase 8.9 million ordinary shares at $11.25 per share, representing a discount of around 7.9% to the 10-day volume weighted average price (VWAP).
The newly issued shares will account for approximately 12.15% of Gilat's outstanding share capital following completion.
Net proceeds will be used for general corporate purposes and potential “strategic acquisitions”. The transaction is expected to close this month.
In commercial aviation, Gilat is a key supplier of satellite technology to the commercial aviation in-flight connectivity market.