(Recasts, adds CEO quotes)
SYDNEY, Nov 24 (Reuters) - Australian brick maker Boral Ltd (BLD) said it raised A$1.58 billion ($1.2 billion) in shares to help pay for a buyout of U.S. rival Headwaters Inc
, sending its stock lower as investors factored in the effects of having more scrip on issue. Boral said on Thursday it closed the institutional component of a capital raising that it hopes will total A$2.05 billion, and that it now hopes to raise another A$483 million from retail investors by Dec. 9.
"We see the success of the equity raising as a clear endorsement of Headwaters's compelling strategic fit within the existing Boral business," Boral Chief Executive Officer Mike Kane said in a statement.
The institutional share raising was "multiple times oversubscribed", Boral added in the statement.
Shares in Boral fell 12 percent to A$5.09, higher than the A$4.80 issue price of the new shares, suggesting investors took a favourable view of a deal which the company says will double its U.S. presence just as President-elect Donald Trump plans to boost infrastructure spending.
Australia's broader S&P/ASX 200 index (xjo) was flat.
($1 = 1.3565 Australian dollars)
