Ausdrill to raise $104m

Ausdrill will raise nearly $104 million through a placement and underwritten rights issue with managing director Ron Sayers to invest $5 million of his own money into the mining services company.

The company today emerged from a week-long trading halt to say that it had received commitments to raise the funds through a $61.92 million placement and $41.75 million rights issue.

The placement and rights offer are being jointly managed by Argonaut Securities and Patersons Securities, with both brokers also underwriting the rights issue.

Ausdrill said it had received commitments to raise the funds under the placement, which was marketed to investors in Australia, New Zealand, Hong Kong and Singapore.

Shares in the placement, conducted through a bookbuild, were priced at $2 each.

The rights offer consists of a one-for-10 share issue.

Shares in Ausdrill shed 17 cents to $2.10 at 11:14 AEST.

Mr Sayers, Ausdrill's largest shareholders, has indicated he will invest $5 million through the rights offer.

Funds raised will be used to secure a number of large contract opportunities in Australia and Africa, help grow its subsidiary Ausdrill Mining Services and joint ventures African Underground Mining Services and Energy Drilling Australia and working capital.