Noni B has raised $37.8 million from the institutional component of its equity raising, with all its eligible institutional shareholders taking up their entitlements.

The Institutional Entitlement Offer and Institutional Placement were conducted on Monday at a price of $2.50 per new share, attracting existing and new shareholders.

The proceeds will be used to fund a $31 million deal with Specialty Fashion Group to acquire the Millers, Katies, Crossroads, Autograph and Rivers brands.

The next stage of its equity raising for eligible retail shareholders will open on 21 May and seek to raise around $2.2 million, existing retail security holders will be able to subscribe for one new share for ever 13 ordinary shares held by the record date.

Chairman Richard Facioni said the business was thrilled by the response of its shareholders.

“We are thrilled by the overwhelmingly positive response to Monday’s announcement of the acquisition of the specialty assets and the associated capital raising,” he said.

“We very much appreciate the support our existing shareholders have provided us in this transaction and welcome a number of new institutional shareholders to our register at this important step in our company’s history.

“With the acquisition of the specialty assets Noni B Group will become one of the pre-eminent women’s apparel retailers in Australia, whilst retaining our solid, focussed market position.

“The scale this acquisition brings will further enhance the opportunity to continue to invest strategically in customer experience, our physical stores and online,” he continued.