Kathmandu Holdings will take up the full oversubscription in a share purchase plan, raising $50 million to help fund its purchase of US footwear supplier Oboz Footwear.

The Christchurch-based company on Wednesday said it accepted $2 million in oversubscriptions for its share purchase plan, taking total subscriptions to $10m.

That’s on top of $40m raised from institutional investors in a placement.

Shares were sold in both offers at $2.16 apiece, a 10 per cent discount to where the shares traded before the announcement.

The shares fell 0.4 per cent to $2.55 today.

“We are delighted with the extent of support, both for our institutional placement last month and for the share purchase plan, and the affirmation by our shareholders of our growth plans for the business,” chair David Kirk said in a statement.

“The board would like to thank all those shareholders who participated in the SPP for their continuing support of Kathmandu.”

The capital injection will be used to help pay for the US$60m upfront purchase of Oboz, which Kathmandu pursued to expand its presence in the North American outdoor market.

If the acquisition meets certain earnings targets in calendar 2018, Kathmandu will pay up to US$15m more.

Some 1516 Kathmandu shareholders of its 3514 investors sought to participate in the share purchase plan, offering $14.5m, meaning their offers will be scaled.

Briscoe Group, which made a failed takeover bid in 2015 when it built up a 19.8 per cent stake, participated in both the institutional placement and share purchase plan.

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