16/04/2019 - 11:04

Altech raises $18m

16/04/2019 - 11:04

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Altech Chemicals has raised $18 million via a share placement, with the proceeds to primarily go towards the company’s high purity alumina (HPA) plant in Johor, Malaysia.

Iggy Tan says the company is delighted to welcome two new German strategic investors.

Altech Chemicals has raised $18 million via a share placement, with the proceeds to primarily go towards the company’s high purity alumina (HPA) plant in Johor, Malaysia.

Under the placement, the shares had an issue at a price of 10.85 cents per share, which represents a 16.5 per cent discount to its price before going into a trading halt.

In a statement, Altech said the placement was anchored by two new German institutional investors, Deutsche Balaton and Delphi, which each subscribed to $5.425 million worth of shares.

Existing Altech shareholders SMS Investments and the Melewar Group have each agreed to subscribe to $2 million of new shares.

Funds raised from the placement will be applied towards the commencement of Stage 2 engineering and construction of the (HPA) plant in Malaysia and for administration and working capital purposes.

In Johor, Stage 2 engineering and construction works will include third party and supplier engineering, and advancing various civil loads in the plant.

Petra Capital acted as lead manager and bookrunner to the placement.

Altech managing director Iggy Tan said the company was delighted to welcome the two new German strategic investors, which will have a combined 13.6 per cent shareholding in the company once the placement is completed.

“Next steps will include non-technical project due diligence such as legal, detailed HPA market research, bank project financial modelling and inter-creditor discussions with KfW IPEX-Bank,” he said.

Shares in Altech were down 3.85 per cent to trade at 12 cents each at 12.30pmAEDT.

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