Ausdrill Ltd
(ASX:ASL) has announced a capital raising of $103.67 million to fund the growth of the company following its acquisition of drilling and blasting services firm Brandrill.
The raising is made up of a placement of 30.96 million shares to raise $61.92 million before costs and a subsequent non-renounceable pro rata entitlement offer to existing eligible shareholders to raise a further $41.75 million.
The board has received offers from institutional and sophisticated investors to subscribe for shares in relation to the placement at an issue price of $2 per share.
Managing Director Ron Sayers, who is the company’s largest shareholder, has indicated he proposes to invest a further $5 million in Ausdrill through the entitlement offer.
The company says the proceeds of the raising will also be used to provide funding for a number of large opportunities in Australia and Africa that it is currently tendering for, some of which it is believed to have been shortlisted.
Settlement of the placement is scheduled for April 8.
For the 2009 financial year, Ausdrill reported a profit of $40.24 million.
