Shares in Ausdrill Limited continued to recovery yesterday from the big fall Monday after the company revealed details of a $103 million capital raising.
The shares fell 11% at one stage on Monday to $2, the issue price, before regaining ground in late trading and in yesterday’s dealings.
The shares ended at $2.15, still down on the $2.27 they closed at before the details of the issue were revealed on Monday.
The company’s shares had been suspended from March 22 until Monday to allow the raising to be organised.
Around 60% of the amount has already been committed by major institutions via a bookbuild conducted over the past week.
The rest will be raised from shareholders in a non-renounceable rights issue.
The fund raising will consist of a placement of 30.96 million fully paid ordinary shares.
The company said these "would be marketed chiefly into Australia, New Zealand, Hong Kong and Singapore to raise $61.92 million before costs".
And the then a subsequent fully underwritten non-renounceable pro rata entitlement offer to existing eligible shareholders on the basis of 1 Share for every 10 Shares to raise a further $41.75 million before costs.
"The board of Ausdrill is pleased to advise that it has received irrevocable offers from institutional and sophisticated investors to subscribe for Shares in connection with the Placement, which was conducted via bookbuild, at an issue price of $2.00 per Share.
"Ausdrill’s Managing Director and largest shareholder, Mr Ron Sayers, has indicated to Ausdrill that he (including through his controlled entities) proposes to invest a further $5,000, in Ausdrill through the Entitlement Offer," the company said in yesterday’s statement.
"Shares offered under the Entitlement Offer will be offered to shareholders at the same price per Share as the Placement Shares.
"The Placement Shares and the Entitlement Offer Shares will not be entitled to receive Ausdrill’s interim 5 cent dividend payable on 30 April 2010," Ausdrill said.
Settlement of the Placement is scheduled for Thursday, 8 April 2010 and the Placement Shares are expected to be allotted and issued the day after settlement (Friday 9 April 2010). The Placement Shares will trade under a separate ASX code until the Ex Dividend Date (15 April 2010).
In its statement Ausdrill said the money will be used to provide working capital to fund the growth of the business following the acquisition of Bran drill, and the expected growth of the company; provide funding for a number of large opportunities both in Australia and in Africa that Ausdrill is currently tendering for which, if won, will require significant capital expenditure.
And Lend Lease Group says it has completed its fully underwritten $806 million equity raising.
Lend Lease said that 28,206,762 new securities were offered under the Shortfall Bookbuild conducted on Monday.
"The Shortfall Bookbuild priced at $8.60 per new security, represents a small discount of 1.4 per cent to the last traded price of $8.72 of Lend Lease securities and a premium of 90 cents or 11.7 per cent to the Entitlement Offer price of $7.70 per new security," Lend Lease said.
Lend Lease shares closed up 8c at $8.80 yesterday.
"This premium will be returned to renounced eligible institutional and retail security holders and to ineligible security holders on or about Friday, 9 April 2010, as described in the Retail Entitlement Offer Booklet dated Wednesday, 3 March 2010."
