AJ Lucas launches placement and entitlement offer

Company News

by Kathy Skantzos

Service provider to the energy, mining and infrastructure sectors AJ Lucas (ASX:AJL) has launched a placement to institutional investors to raise up to $22.6 million, in addition to an institutional entitlement offer to raise up to $31.2 million.

The placement and entitlement offer are priced at $0.32 a share, which represents a 13.5 per cent discount at the closing share price on 19 January 2018.

Around 70.5 million new shares are expected to be issued under the placement.

Proceeds from the capital raising will be used to fund future commitments to the company’s UK investments, as well as partially repay debt and fund working capital.

The institutional entitlement offer will close today, and the retail entitlement offer will open on 30 January 2018.

Shares in AJ Lucas (ASX:AJL) closed 2.8 per cent higher on Friday at $0.37.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.