02/06/2020 - 11:39

Decmil completes $30m raising

02/06/2020 - 11:39

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Shares in Decmil dropped by more than 50 per cent today after the engineering and construction company completed a heavily discounted rights issue, which is part of a broader $50 million capital raising plan.

Decmil completes $30m raising
Andries Dique says the raising is a strong endorsement of Decmil's business turnaround strategy.

Shares in Decmil dropped by more than 50 per cent today after the engineering and construction company completed a heavily discounted rights issue, which is part of a broader $50 million capital raising plan.

Osborne Park-based Decmil today announced it had completed a 4.2-for-one institutional rights issue to raise $30 million, with the offer fully underwritten by Hartleys.

Decmil is seeking to raise up to a further $20 million under the retail component of the offer, which is partially underwritten by up to $11 million.

The company will issue 600 million shares in total, priced at 5 cents each, with settlement expected to occur on June 9.

The raising comes two weeks after Decmil replaced Scott Criddle as its chief executive, citing a business turnaround, and flagged a $29 million write-down of its Homeground Gladstone LNG workforce accommodation village in Queensland, which the company is planning to sell.

Newly appointed chief executive Andries Dique said the capital raising was a strong endorsement of Decmil's business turnaround strategy.

He said significant infrastructure spending in Australia was expected over the next few years.

“We will now have the balance sheet to ensure we are well positioned to capitalise on this huge opportunity,” Mr Dique said in an ASX announcement.

Decmil, which had appointed Mr Dique to lead the company last month, resumed trading on the ASX today after requesting a voluntary suspension on May 19.

Company shares were down 52 per cent at 1:10pm AEST to trade at 9.7 cents.

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