It is understood SRG will seek to raise about $40 million via the placement of new shares to institutional investors. Barrenjoey Capital Partners will underwrite the raising, sources said.The equity offer’s likely to increase SRG’s shares on issue by about 15 per cent. The group had a $338 million market capitalisation as at Wednesday’s close. It comes with the group’s shares up 13 per cent this year and 42 per cent during the past 12 months.
It’s expected to use the proceeds for an acquisition. The target’s not known, however SRG Glbal has recently been shopping in engineered products, acquiring Queensland-based Bartek late last year. It’s likely to be a big deal for the group, which delivers engineering-led asset maintenance and mining and construction services. The company’s clients include major miners BHP, Rio Tinto and Fortescue Metals Group, while it’s recently been active at the Kalgoorlie Super Pit and Navarre Minerals’ Mt Carlton gold mine in Queensland.The raising comes as SRG Global investors were told to expect a 25 per cent increase in EBITDA in the 2023 financial year.
co-edits Street Talk, specialising in private equity, investment banking, M&A and equity capital markets. He has 10 years' experience as a business journalist and worked at PwC, auditing and advising financial services companies.