Valmec in $5m raising

Engineering and construction group Valmec has tapped investors for $5.1 million through a strongly supported share placement that will strengthen the company’s balance sheet.

The placement received strong demand from institutional and sophisticated investors with 20 million shares issued at 25 cents each.

Hartleys acted as sole lead manager while Bell Potter Securities acted as co-manager to the raising.

Managing director Steve Dropulich said Valmec was pleased with the strong support received for the placement.

“Following completion of the placement, Valmec will be in a strong financial position, ensuring the company remains well positioned to capitalise on organic and inorganic growth opportunities as they arise,” he said.

Meanwhile, the company announced yesterday that its founding directors, Stephen Zurhaar, Stephen Lazarakis, Vincent Goss and Mr Dropulich, exercised 6.6 million options, raising $1.6 million.

Valmec recently acquired specialist pipeline testing company APTS, which had been placed into receivership late last year.

Shares in Valmec were up 1.9 per cent to 26.5 cents each at 1pm AEDT.