Property developer Diploma Group says it has raised $15 million that will help fund future acquisition opportunities.
Property developer Diploma Group says it has raised $15 million that will help fund future acquisition opportunities.
Diploma today announced that it had completed a placement of 33.3 million shares at A$0.45 per share to raise gross proceeds of A$15.0 million (Placement).
The Placement has resulted in a broadening of the share register via the strong support of a number of new institutional investors.
The capital raised will provide Diploma with increased balance sheet capability to:
- Pursue organic expansion opportunities in the construction sector - providing Diploma the balance sheet capacity to undertake significant construction opportunities currently being presented in the Western Australian market.
- Fund future acquisition opportunities of development project sites in the Western Australian market which are currently being assessed and are subject to ongoing due diligence and incomplete negotiations
- Ongoing working capital and continued organic growth of Diploma's existing operations.
Euroz Securities Limited acted as Lead Manager to the Placement. The Placement to institutional and sophisticated investors will be made in two tranches:
- Tranche 1: comprising 18.0 million shares to raise A$8.1 million to be issued immediately under the Company's 15% capacity, pursuant to ASX Listing Rule 7.1.
- Tranche 2: comprising 15.3 million shares to raise a further A$6.9 million to be issued subject to shareholder approval at a meeting of members to be held on or about Wednesday 28 April 2009. A Notice of Meeting will be sent to shareholders in due course.
New shares issued under the Placement will rank equally with Diploma's existing shares.
Diploma's Managing Director, Nick Di Latte, said the Placement ensured Diploma was strongly positioned for continued future growth.
"We are delighted with the high level of support that Diploma has received from both new institutional shareholders and sophisticated investors participating in the Placement," he said. "We remain committed to delivering continued revenue and earnings growth in order to create value for all our shareholders. Proceeds from the Placement will provide us with greater flexibility to pursue our targeted future growth opportunities and deliver on this commitment."
