Project services provider Decmil Group (ASX:DCG) has settled the institutional component of an entitlement offer, raising about $4.562 million to improve its multi-operational loan facility and increase its surety bond capacity.
Under the institutional component of the entitlement offer, the company issued about 22.8 million redeemable convertible preference shares (RCPS) at $0.20 per RCPS. The company says the capital raised will be used to provide working capital to target projects with more equitable risk allocations.
Decmil also reports it dispatched a prospectus, along with personalised entitlement and acceptance forms, to eligible retail shareholders on Thursday (29 June 2023) for the retail component of the entitlement offer.
The company advises it will apply for the quotation of the RCPS issued under both the institutional and retail components of the entitlement offer once the retail entitlement offer is settled on 21 July 2023.
Decmil is also clarifying that the information contained in the institutional entitlement offer announcement was based on the information available to the company at the time.
The precise number of RCPS that the institutional entitlement offer participants were entitled to subscribe for, and the corresponding amount that was raised under the institutional entitlement offer, has been calculated following the occurrence of the entitlement offer’s record date.
All up, Decmil is aiming to secure up to $26.28 million through the issue of about 131.4 million RCPS under the placement and the entitlement offer
This entitlement offer is part of a broader capital raise that includes a single tranche placement. All up, Decmil is aiming to secure up to $26.28 million through the issue of about 131.4 million RCPS under the placement and the entitlement offer.
Blue Ocean Equities has been appointed by Decmil to act as the underwriter and lead manager of the capital raise. In consideration for these services, Blue Ocean will be paid 6% of the total amount raised and will be issued about 2.793 million options subject to shareholder approval.
Decmil Group is an Australian project services provider that delivers integrated construction and engineering solutions across the energy, resources, infrastructure, and construction sectors.
The company specialises in building bridges, roads, rail infrastructure, aviation infrastructure, temporary accommodation, and non-process infrastructure, along with building commercial and mixed-use developments and health and education facilities.
Decmil also has refurbished and constructed training areas for the defence sector, constructed wellsites and downstream processing components for the oil and gas sector, provided services for the wind and solar sectors, and has provided battery and energy storage systems.
Write to Harry Mulholland at Mining.com.au
Images: Decmil Group Limited