Finbar to raise $45.6m for Karratha

Property developer Finbar Group has announced plans to raise $45.6 million via a placement and share purchase plan to step up development activity on its Karratha project and continue to bolster its Perth project pipeline.

The company has successful placed more than 24.9 million new shares at $1.15 per share to raise $28.67 million before costs.

The placement was to professional and sophisticated investor clients of Bell Potter Securities.

Eligible Finbar shareholders are also invited to participate in the capital raising by taking part in a Share Purchase Plan at $1.15 per share to raise $13.94 million.

The shareholders can subscribe for up to $15,000 of ordinary shares.

Bell Potter Securities will also underwrite the SPP.

In a statement to the Australian Securities Exchange, the company said it hopes to accelerate its Karratha development plans, bringing forward the construction of stage two of its Pelago project.

Finbar said it was also negotiating new Perth projects.

Finbar's managing director Darren Pateman said that the company has demonstrated a history of responsible capital management.

He said the property developer only raised money at times when growth opportunities are at hand so the new capital can be deployed promptly and efficiently to maximise the benefit for new and existing shareholders.

"The company is delighted with the result that will not only bring new shareholders to the register, increase institutional support, and improve overall liquidity, but will also provide existing shareholders with an opportunity to participate further in the growth of the company ", Mr Pateman said.