AFR: Euroz Hartleys and Petra Capital tapped for Decmil raise
Construction engineering company Decmil is raising $12 million, as it looks to capitalise on the high levels of spending on public infrastructure.
The company has appointed Petra Capital and Euroz Hartleys as joint lead managers.
The capital raise will take the form of a two tranche $10 million placement to institutional investments and a $2 million share purchase plan.
The offer comes at a 40¢ per share price, representing a 7 per cent discount to the last trading price.
Bids are being called for by 5pm on Thursday.
The business has approximately $570 million of work in hand (contracted and preferred) into the 2024 financial year, of which 70 per cent is generated by government projects.
It has $9.7 million in case and a $40 million multi-option debt facility with NAB.
It is expected to record about $313 million in revenue for 2021 and normalised EBITDA of $7.5 million to $8 million, before recognising a $9.7 million writedown of contract assets relating to a legacy legal dispute.
Source: The Australian Financial Review