AusGroup plans S$37m equity fundraising, rights issue

AUSGROUP announced late on Thursday night it is working to raise S$37 million through the issuance of some 1.05 billion subscription shares at S$0.035 apiece.

The construction services company also announced that it is undertaking a proposed renounceable non-underwritten rights issue of up to 752,402,733 rights shares, on the basis of 1 rights share for every 2 existing shares, and the price represents a discount of 25.37 per cent to the last trading day's volume weighted average price (VWAP) of S$0.047 on March 28, 2018.

As per the subscription agreement, it will issue 750 million subscription shares to Asdew Acquisitions, 200 million to Toh Bee Yong Bernard, and 100 million to Poh Boon Kher Melvin, who is also an independent non-executive director of the company.

Up to 30 per cent of the funds raised will be used for partial cash redemption of the outstanding notes and the remainder to supplement the company's growing general working capital requirements, AusGroup said.

Managing director Eng Chiaw Koon said that securing investments from "highly respected financial investors including Asdew Acquisitions Pte Ltd, Mr Bernard Toh and Mr Melvin Poh", demonstrates "commitment from significant shareholders".

Chief executive and executive director Shane Kimpton said the injection of capital will support the company's Port Melville facility, which offers a fuel supply service for customers in Australia's Northern Territory.