AusGroup plans private placement of 96m new shares

AUSGROUP has proposed a private placement of 96.1 million new shares - representing about 19.9 per cent of the total number of its issued shares - from which it intends to raise net proceeds of about $15.2 million.

Its issue price of 16.8 cents per share represents a discount of 8.5 per cent from the weighted average price based on Dec 30-Dec 31 trades. Dec 30 was the last full market day preceding the date of signing of the placement agreement; trading in the company's shares was halted on Dec 31.

The company, which offers construction and fabrication services to the energy and resources industry, said it intends to use about half of the proceeds to support collateralisation for the group's future bonding requirements, and the other half as the group's general working capital.