Engineering company RCR Tomlinson Ltd will aim to raise up to $24.2 million through a share placement with corporate advisor Hartleys Ltd.
Engineering company RCR Tomlinson Ltd will aim to raise up to $24.2 million through a share placement with corporate advisor Hartleys Ltd.
The placement of 11 million shares at $2.20 each is planned to strengthen the Company's balance sheet, provide additional working capital and allow the Company to undertake further acquisitions.
RCR chief executive John Linden will reduce his shareholding from 4.45 million to 2.45 million shares in order to facilitate this deal.
The company recently experienced a growth in net profit after tax of 137 per cent.
The full text of a company announcement to the ASX is pasted below
RCR Tomlinson Ltd (RCR) is pleased to advise that it has reached agreement with corporate advisor Hartleys Limited to undertake a placement of up to 11 million shares at an issue price of $2.20 per share, to raise up to A$24.2 million. The placement will be
made predominantly to institutional clients of Hartleys, and sophisticated investors.
Overwhelming institutional investor interest was expressed in respect of the placement.
The Company will allot the placement shares upon receipt of placement monies expected in approximately one week.
The funds from the capital raising will be used to strengthen the Company's balance sheet, provide additional working capital and allow the Company to undertake further acquisitions.
As a result of the receipt of such strong demand from institutional investors John Linden, RCR's CEO, will reduce his holding in RCR from 4.45 million shares to 2.45 million shares to facilitate the addition of the institutions to the Company's share register.
RCR anticipates continuing organic sales growth and growth from acquisitions in financial year 2007 after successfully growing revenue by 66% and net profit after tax by 137% in the past financial year.
The outlook for the sectors in which RCR operates continues to be strong as a result of the large number of new resource development projects that continue to be approved.
The Board of RCR are appreciative of the strong support for the Company that has been shown by the investors taking part in this capital raising, and welcome the many new, large institutional investors to the RCR share registry.
