- SRG Global (SRG) raises $46.4 million through an institutional placement to partially fund the acquisition of ALS Asset Care
- The company will issue about 64.4 million new shares at 72 cents per share
- SRG says there was “strong support” for the placement from both existing and new institutional investors
- The company launches a share purchase plan (SPP) in a bid to raise an additional $5 million at the same offer price as the placement
- SRG shares are trading grey at 75.5 cents at 2:14 pm AEDT
SRG Global (SRG) has raised $46.4 million through an institutional placement to partially fund the acquisition of ALS Asset Care.
The company will issue about 64.4 million new shares at 72 cents to raise the funds.
SRG said it received “strong support” for the placement from both existing and new institutional investors, with demand exceeding company expectations.
“The significant demand received from both Australian and international institutional investors in the placement provides a strong endorsement for the acquisition of ALS Asset Care and is a testament to the significant value expected to be created by bringing together two highly complementary, market-leading businesses across the asset sustainability lifecycle,” SRG Managing Director David Macgeorge said.
SRG confirmed the proceeds from the placement would go towards its acquisition of 100 per cent of ALS Industrial, or ALS Asset Care.
Mr Macgeorge said the company was pleased to welcome more than 600 of Asset Care’s employees to its team.
Additionally, the company has invited eligible shareholders to subscribe for up to $30,000 of new shares under the share purchase plan at the same offer price as the placement.
The company aims to raise up to $5 million through the SPP, which will open on February 23 and close at 5:00 pm AEDT on March 8, 2023.
SRG shares were trading grey at 75.5 cents at 2:14 pm AEDT.