Gunns Ltd has failed to achieve the full amount of its proposed retail entitlement offer.

Despite receiving A$36m more than the predicted A$300m through its institutional entitlement offer, its retail entitlement offer achieved just over a tenth of the predicted A$130m.

In September, Gunns said it would raise A$430m through the offers to repay debts and recapitalise its balance sheet to facilitate future growth.

“Our institutional offer was very successful and has allowed us to repay the extended working capital facility which was partly used to fund the acquisition of Auspine, as well as repay a portion of the company’s existing debt facilities,” said managing director John Gay.

“We were not surprised, given the current worldwide equity market condition, that few shareholders took up the retail offer.”

Mr Gay added the retail offer was not underwritten “as we believed the institutional was sufficient for our purposes”.