Highlights

  • Mayfield Childcare (ASX:MFD) shares fell to AUD 0.12 on 13 August 2026, compared with AUD 0.13 at the previous reference point.
  • The company is undertaking a non-renounceable entitlement offer targeting approximately $3 million at $0.10 per share.
  • Existing Shareholder commitments cover approximately $2.28 million, while Canaccord has underwritten a further $736,530.
  • Funds are intended for Working Capital and expenses associated with the offer as Mayfield progresses its operational turnaround.

Mayfield Childcare Limited (ASX:MFD) shares fell to AUD 0.12 at 10:53 am on 13 August 2026. The Australian childcare operator progresses a $3 million non-renounceable entitlement offer announced on 3 August, with the capital raising designed to provide additional working capital for the company's ongoing operational turnaround.

Entitlement Offer Targets $3 Million

Mayfield is offering eligible shareholders two new fully paid ordinary shares for every five shares held at the record date. The issue price has been set at $0.10 per share, with the company seeking to raise approximately $3 million before costs.

The Offer Price represented a 29% discount to Mayfield's ASX closing price of $0.14 on 31 July 2026. The entitlement offer is non-renounceable, meaning the entitlements cannot be traded or transferred.

Shares issued under the offer will rank equally with existing fully paid ordinary shares. The offer also provides a top-up Facility allowing eligible shareholders who take up their full entitlement to apply for additional shares, subject to availability and the allocation arrangements outlined in the prospectus.

Existing Shareholders Provide Pre-Commitments

Mayfield's largest shareholder, Embark Early Education Limited, together with Malcolm & June Ross Investments Pty Ltd and Amresh Sharma, have provided binding commitments relating to the offer.

The commitments total approximately $2.28 million, representing around 75.6% of the targeted amount. The commitments cover the investors' respective entitlements, with Malcolm & June Ross Investments and Mr Sharma also committing to additional shares where available under the top-up arrangements.

The remaining approximately $736,530, equivalent to about 24.4% of the targeted capital raising, has been underwritten by Canaccord Genuity (Australia) Limited.

Underwriting Covers Remaining Amount

The combination of shareholder pre-commitments and Canaccord's Underwriting arrangements covers the full approximately $3 million targeted under the entitlement offer, subject to the relevant commitments being honoured and the underwriting agreement remaining in place.

Canaccord is entitled to an underwriting fee of 6%, plus GST, calculated on the total gross amount raised under the offer.

The company lodged its prospectus with ASIC on 3 August. The offer opened on 11 August, while the current scheduled closing date is 21 August 2026 at 5:00 pm AEST, subject to any permitted extension.

Working Capital and Operational Turnaround

Mayfield intends to use the proceeds primarily for working capital requirements associated with its operational turnaround, as well as costs related to the entitlement offer.

The company's stated operational focus includes improving occupancy, labour efficiency and centre performance. Chief Executive Officer Daniel Stone is overseeing the turnaround program as the company manages what it describes as challenging market and operating conditions.

Mayfield operates long day early childhood education and care services across Victoria, Queensland and South Australia. Its Revenue is generated through family fees and government childcare subsidies.

Offer Timeline

Under the current indicative timetable, securities issued through the offer are expected to be quoted on a deferred settlement basis from 24 August. The underwriter is scheduled to be notified of any under-subscription on 25 August, with the underwriter subscribing for any applicable shortfall on 26 August.

The proposed Issue Date is 27 August, followed by expected Quotation of the new shares on the ASX on 28 August. These dates remain subject to the company's ability to extend the closing date in accordance with the offer terms.

Conclusion

Mayfield Childcare's shares moved lower to AUD 0.12 on 13 August as the company advances a fully covered entitlement offer targeting approximately $3 million. The fundraising involves a $0.10 issue price, shareholder commitments of approximately $2.28 million and a further $736,530 underwriting commitment from Canaccord. The proceeds are earmarked for working capital and offer-related costs while management continues its focus on occupancy, labour efficiency and centre performance. With the offer scheduled to close on 21 August and new shares expected to begin trading on 28 August, the coming weeks will centre on completion of the capital raising and the associated changes to the company's issued share capital.