SCEE $32m placement to facilitate growth

Southern Cross Electrical Engineering will raise $32 million through a share placement to provide working capital as the company’s order book continues to expand.

The Western Australia-based company will issue 44.25 million shares at 75 cents per share, a 6.5 per cent discount, with Euroz Securities acting as the sole lead manager.

The funds from the raising are expected to provide general working capital with the company maintaining a substantial pipeline of work.

Managing director Graeme Dunn said funding would also be used to facilitate further growth.

“We are extremely pleased with the level of support for the placement from existing and new investors,” he said

“Having achieved a number of transformational milestones in the last financial year, including the acquisition of leading east coast electrical contractor Heyday and organic entry into the transport, defence, renewables and utilities sectors, we now have a significantly enlarged opportunity pipeline exceeding $1.5 billion.

“The funds raised from the placement allow us to deliver this opportunity pipeline while also giving capacity to support growth through further sector and geographic diversification.”

The company's share price finished down 9.7 per cent at 74 cents.