Decmil plans $50m raising

Decmil Group has announced a capital raising for up to $50 million to allow the company to tender for larger infrastructure and defence contracts.

Under the $45 million placement, the company will issue 56.2 million shares at 80 cents each, representing a 12.6 per cent discount to Decmil’s last closing price.

Hartleys is acting as lead manager to the placement.

The Osborne Park-based company also said it would raise up to $5 million via a share purchase plan under the same conditions as the placement.

In a presentation to the ASX, Decmil said the funds would be used to strengthen its balance sheet.

“The proceeds of the placement and share purchase plan will be used to bolster Decmil’s general working capital position, maintain a strong net cash position, improve the current ratio for accreditations and to fund strategic opportunities and the strong pipeline of tenders,” the company said.

“A strong balance sheet is increasingly important for Decmil as it seeks to move up the value chain and participate in larger public sector tender processes including major transport Projects, public private partnerships and larger contracts in defence and corrections.”

Decmil said major shareholder Denis Criddle intends to subscribe for $3.5 million worth of shares under the placement.

Shares in Decmil last changed hands at 92 cents each.