Decmil Group Ltd (ASX:DCG) has raised $50 million in an oversubscribed share placement to institutional and professional investors.
The placement consists of 62.5 million shares at a price of 80 cents each, which represents a discount of 11% to Decmil’s 5-day volume weighted average price.
Decmil’s board also supported the placement, including non-executive director Dennis Criddle who subscribed for $3.5 million.
The company is also providing a share purchase plan for existing eligible shareholders to participate in the raising, up to a maximum of $5 million.
Funding a good growth profile
Decmil managing director & CEO Scott Criddle said it was an exciting time for the company.
He said: “Over the past few years we have successfully executed our strategy to increase our exposure to the infrastructure sector whilst maintaining our cornerstone resources capability.
“Our focus has been on tendering, and winning, larger infrastructure contracts which we believe present a significant opportunity for Decmil going forward.
“We are now very confident that this strategy has and will continue to provide meaningful opportunities for Decmil.
“This equity raising will ensure that we have the balance sheet to continue to move up the value chain and win larger infrastructure contracts.
“It will fund a good growth profile and ensure that Decmil is well positioned for strong performance in years to come.”
Existing shareholders to participate
The share placement will be held in two tranches, with the first comprising around 26.2 million shares and the second around 36.3 million shares.
The first tranche, worth around $20.9 million, is expected to be settled on 31 August 2018.
The second tranche, worth around $29.1 million, will be issued subject to shareholder approval.
The share purchase plan allows eligible shareholders to subscribe for up to $15,000 without incurring transaction costs.
Decmil offers a diversified range of serves to the resources and infrastructure industries.
Companies within the group specialise in design, civil engineering and construction; accommodation services; and mechanical fabrication and maintenance.
Source Proactive Investors