Mining services and engineering company SRG Global (ASX:SRG) has raised $5 million through a share purchase plan (SPP) to maintain a ‘strong’ balance sheet as its endeavours to grow its asset maintenance services.
Under the SPP, the company says eligible shareholders could apply for up to $30,000 of new fully paid ordinary shares in SRG at an issue price of $0.72. This is the same price as the recently completed institutional placement without paying any brokerage or transaction costs.
SRG reports the SPP has received ‘strong’ support from existing shareholders with applications exceeding the target of $5 million, however the SPP remains capped at $5 million.
The company will undertake a pro-rata scale back of the applications to the $5 million cap, applying allocation principles based on each applicant’s existing shareholding in SRG as at the record date for the SPP. This is consistent with the scale back policy outlined in the SPP booklet.
Commenting on the SPP, SRG Global Managing Director David Macgeorge says: “We are pleased to have received substantial interest and support from our shareholders. The proceeds from the SPP together with the recently completed placement ensure we continue to maintain a strong balance sheet whilst delivering on our strategy of step change growth in recurring asset maintenance services.
“On behalf of the board, I would like to thank our shareholders for their ongoing support of SRG Global and the ongoing strategic transformation of the company”
On behalf of the board, I would like to thank our shareholders for their ongoing support of SRG Global and the ongoing strategic transformation of the company.”
SRG reports the new shares will be issued under the SPP on 15 March 2023, and are expected to begin trading on the ASX on 16 March 2023. The company notes these shares will rank equally with existing SRG shares and will also be eligible for the $0.02 per share interim dividend declared on 16 February 2023.
Holding statements will be dispatched and applicable application monies will be refunded by 17 March 2023.
SRG Global is a diversified industrial services company that specialises in asset maintenance, mining services, and engineering and construction. The company says it delivers critical services for major industries across the entire asset lifecycle of engineering, construction, and sustain.
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