Otoc raises $12m for new acquisitions

Perth-based surveying and construction contractor OTOC has raised $12 million from investors to fund its future growth plans.

The diversified company raised the funds through the placement of 44.4 million shares at 27 cents each.

“Net proceeds from the placement will be used to fund future acquisitions and expansion in line with Otoc’s strategy to create a national quality planning, design, survey and spatial solutions company and for general corporate purposes,” Otoc said in a statement.

Canaccord Genuity and Veritas Securities acted as joint lead managers to the raising.

Chief executive Simon Thomas said the placement strengthened Otoc’s balance sheet and would allow the company to continue to grow.

“We are pleased with the support of both existing and new institutional investors and are encouraged by the strong interest in the placement,” he said.

Otoc made a number of acquisitions during the 2016 financial year, including the purchase of Linker Surveying and Lawrence Group, which added to the company’s pool of surveying subsidiaries – Whelans, Bosco Jonson, Geo-Metric Surveying and THG.

These acquisitions, coupled with big contract wins, led to Otoc reporting a $19.7 million net profit for FY16 and paying out its first ever dividend.

Otoc shares were 1.6 per cent lower to 30.5 cents each ahead of the close of trade.