Investors pour $30m into Wagner
Big institutional investors have snapped up $30 million of shares in Wagners Holdings in a capital raising to help the company expand its Construction Material and Composite Fibre Technologies businesses.
The company has announced that it would issue up to 11,539,650 new fully paid ordinary shares (Placement Shares) at an issue price of $2.60.
The company’s shares, which have been in a trading halt pending the announcement, are expected to resume trading on the Australian Stock Exchange on Friday.
Wagners’ Managing Director Cameron Coleman said the company had identified growth prospects for both the construction materials division and the composite fibre technologies business.
“We intend to increase the number of plants in our South-East Queensland concrete plant network and are expanding our manufacturing capacity for composite electrical distribution poles,’’ Mr Coleman said.
“This incremental investment to enhance capacity and support future growth will be achieved while maintaining our prudent and disciplined approach for the requisite internal hurdles for Return on Capital and payback period.
“The Board has determined that today’s placement with institutional investors is the most appropriate course of capital management to assist in funding this phase of growth.
“We have a clear strategy around the growth of these businesses and are focused on a targeted allocation of capital into markets and in a manner that will deliver value to shareholders.”
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