Global Construction Services is assessing its options after pulling a $32 million capital raising, after failing to attract the support of investors.
GCS said today it was in further discussions with lead manager Bell Potter Securities in relation to a "potential" capital raising on revised terms, after withdrawing its entitlement issue and share placement.
The entitlement issue and placement had been priced at 85 cents per share, which ended up being above its prevailing share price when the offer was launched.
The company was seeking to raise $14.7 million through the placement to institutional investors; $13.8 million through a rights issue to institutions; and $3.7 million through a rights issue to retail shareholders.
Only the retail offer, which was conditional on completion of the first two tranches, was underwritten by Bell Potter.
Argonaut Securities was co-manager to the institutional component of the offer.
GCS had been planning to use $20 million of the proceeds to reduced its bank debts, which came in at $55.4 million as of June 30.
Shares in the scaffolding firm plunged in the lead-up to the capital raising, falling to 83.5 cents on Monday after announcing a net profit of $22.8 million for the 12 months to June 30.
While the group lifted revenue substantially, its profit margin was squeezed, earnings per share fell and it withheld a final dividend.
Prior to releasing its results, GCS shares were trading around $1.15.
The company's shares remain suspended.