Construction group Global Construction Services has announced a $32.1 million capital raising plan to reduce its debts and provide additional capital to achieve a 20 per cent growth target over the next 12 months.
GCS today announced a placement priced at 85 cents per share to raise $14.7 million, a 3 for 17 non-renounceable entitlement issue for institutions to raise up to $13.8 million, and a 3-for 17 non-renounceable rights issue to retail shareholders to raise up to $3.7 million.
The entitlement issues were both also priced at 85 cents per share.
GCS stocks last traded at 83.5 cents before entering a halt this morning, but traded as high as $1.15 a week ago.
"This capital raising will strengthen the group's growth platform by enabling GCS Group to meet the demand it is experiencing for its products and services whilst reducing the overall leverage of the company and providing the headroom to continue to enhance value," managing director Enzo Gullotti said.
"GCS Group has undertaken a significant capital investment and expansion program over the last two years to ensure we capture the benefits of the significant investment pipeline in the commercial resources industrial and energy sectors."
Mr Gulloti said the company expected to grow its NPAT by 20 per cent in FY2013.