Southern Cross Electrical Engineering Completes $150m Institutional Placement

Southern Cross Electrical Engineering (ASX: SXE) has finalised a fully underwritten institutional placement to raise $150 million through the issue of approximately 37.5 million new shares.

The placement was priced at $4.00 per share after strong support from existing shareholders and new investors.

This represents a 0.5% discount to the company’s last traded price of $4.02 on 12 June and a 1.2% discount to the five-day volume weighted average price of $4.05.

Settlement is scheduled for 19 June, with allotment and normal trading of the new placement shares expected on 22 June.

Strong Investor Support

Managing director Graeme Dunn said the placement outcome reflected strong investor support for the group’s growth strategy.

“We are very pleased with the outcome of the placement [and] to welcome a number of new high-quality investors to SCEE’s register,” he said.

“This funding will provide us with significant flexibility to accelerate our growth strategy as we continue to see strong momentum across our business being driven by attractive long-term growth drivers across multiple sectors.”

Southern Cross plans to use the funds to support working capital requirements linked to new work awards.

The raising also gives the group flexibility to pursue acquisition opportunities that could broaden its geographic reach or add new operational capabilities.

Share Purchase Plan

Southern Cross will also offer eligible shareholders the opportunity to participate in a non-underwritten share purchase plan (SPP) targeting up to $15m.

Eligible shareholders in Australia and New Zealand will be able to subscribe for up to $30,000 in new shares without transaction or brokerage costs, with shares to be issued at $4.00 each, matching the final placement issue price.

The company may accept applications above or below the $15m target and may scale back applications at its discretion.

The SPP is expected to open at 10am Sydney time on 23 June and close at 5pm on 7 July.

Results are expected to be announced on 13 July, with issue and allotment of new SPP shares scheduled for 14 July and trading anticipated to begin on 15 July.