GR Engineering Services (ASX:GNG) has secured binding commitments for a non-underwritten $100 million institutional placement before costs.
New shares will be issued at $6.10 each, representing a 3.3% discount to the company’s last traded price of $6.31 on 21 August. The price is equal to its 10-day volume-weighted average price.
The shares will be issued under GR Engineering’s existing placement capacity. Settlement is scheduled for 1 September, followed by allotment on 2 September.
Managing Director Tony Patrizi says the funds will strengthen the company’s balance sheet as it works through its contracted and prospective workload.
“We thank existing shareholders for their continued support and welcome our new investors,” Patrizi says.
“This funding will strengthen the balance sheet and ensure that the group is well-positioned to deliver on the contracted and near-term pipeline of work.”
The pipeline includes a $275 million engineering, procurement, and construction contract with Develop Global (ASX:DVP) for the Yitirrti Copper-Silver-Zinc Project, as reported by Mining.com.au earlier this month.
GR Engineering’s shares are expected to resume trading on the ASX today, 26 August.
The company notes it is also offering eligible shareholders in Australia and New Zealand the opportunity to participate in a non-underwritten share purchase plan (SPP) targeting up to $10 million before costs.
Shares under the SPP will be priced at $6.10 each, matching the institutional placement. Eligible investors can apply for up to $30,000 of shares without paying brokerage, commission, or transaction costs.
GR Engineering may scale back applications or accept subscriptions above the $10 million target.
The offer is scheduled to open on 2 September and close on 23 September, with shares expected to be allotted on 30 September. The company plans to release the SPP booklet when the offer opens.
The capital raising was announced alongside GR Engineering’s full-year results on 24 August.
GR Engineering is a process engineering consultancy and contractor to the mining and mineral-processing industries in Australia and internationally.
Write to France Pinzon at Mining.com.au
Images: GR Engineering Services
