(Sharecast News) - Construction and fabrication firm Lamprell said on Friday that it had raised $30.1m by way of an accelerated bookbuild in order to address near-term working capital needs, strengthen its balance sheet and take advantage of "significant accessible opportunities" available in its addressable markets.
Lamprell highlighted that since the beginning of the year, its addressable markets had demonstrated "significant growth and recovery", with the firm's bid pipeline increasing by 26% to $7.6bn, whereby the renewables component, at $3.9bn, had grown to just over 50% of the total for the first time.
"The board of directors of Lamprell believe the group's target addressable market in the renewables sector could add in excess of $6.0bn by 2022 to the group's bid pipeline," said the company.
"Against the backdrop of these strategic opportunities, the group has been seeking new debt and/or equity funding arrangements in order to strengthen its balance sheet and deliver the next phase of its growth."
Lamprell stated the placing, led by Investec Bank, was oversubscribed, and that it had conditionally placed 67.90m shares with institutional investors at a price of 32.0p per share, a discount of approximately 8.6% to the stock's closing price on 28 October.
In conjunction with the placing, certain directors will directly subscribe for an aggregate of 445,000 new ordinary shares in the capital of the company.
Lamprell expects that settlement for the new ordinary shares and admission to trading will take place on or before 25 November.
Separately, Lamprell stated that it was continuing to "closely monitor" the ongoing Covid-19 global pandemic and various applicable governmental guidelines and in light of the UAE government's advice for people to avoid all non-essential travel and mass gatherings, strongly recommended that shareholders do not attend its upcoming extraordinary general meeting in person.
As of 0900 BST, Lamprell shares were up 5.57% at 36.95p.
3 May 2016 14:44