Argonaut Congratulates Ausdrill on Highly Successful Capital Raising
Argonaut acted as Joint Lead Manager to successfully raise A$100 million for Ausdrill Limited (ASX:ASL) (“Ausdrill” or “the Company”). The Company raised funds from Australian and international institutional and professional investors by way of a placement at an issue price of A$2.14 per share. The placement was heavily oversubscribed with significant demand generated from new major domestic and international institutional investors.
Ausdrill has confirmed the proceeds of the Placement will provide significant balance sheet strength and flexibility to capitalise on potential growth opportunities available to the Company. In particular, strong growth is expected from Ausdrill’s African businesses on the back of an exceptionally robust and active pipeline of project opportunities which could necessitate an expansion of its existing mining fleet and an increase in its working capital needs as additional contracts are secured.
Commenting on the Placement, Ausdrill’s Managing Director, Ron Sayers, said:
“Ausdrill is delighted with the extremely strong support for the placement, which was heavily oversubscribed and will see a number of leading institutional investors introduced to our register. We are pleased by the confidence shown by our existing institutional shareholders and very pleased to have attracted the support of such high quality domestic and international institutions.”
He went to conclude:
“This $100 million equity raising reinforces Ausdrill’s financial strength and will further enhance Ausdrill’s ability to take advantage of the strong growth opportunities we are seeing before us, especially in Africa.”
Argonaut is delighted to continue to provide support to Ausdrill and looks forward to our ongoing work with the company.