National electrical contractor Southern Cross Electrical Engineering (SCEE)
(ASX:SXE) has placed $33.2 million from existing and new institutional and sophisticated investors to support its growth strategy.
The funds will provide general working capital for the company’s order book and pipeline of work, strengthen its balance sheet and gives the company the flexibility to capitalise on potential growth opportunities.
SCEE will issue 44.25 million new fully paid ordinary shares under the placement at a price of $0.75 which represents a 9.1 per cent discount from the closing price on 13 November 2017.
Managing Director Graeme Dunn said the company is extremely pleased with the level of support for the placement which gives the company the capacity to grow further.
He added the company has achieved a number of milestones in FY2017, including the acquisition of east cost electrical contractor Heyday, giving the company the opportunity to exceed a $1.5 billion pipeline.
Shares in Southern Cross Electrical Engineering
(ASX:SXE) are trading 5.45 per cent lower to 78 cents.
