SHIP BUILDER, Austal has raised $200 million to expand its US ship building capability at its Mobile, Alabama shipyard.
The capital will be used to fund the FA2 infrastructure expansion project to enable delivery of current and future pipeline of large steel vessels in the USA.
A company announcement on 12 March said Austal had received strong support for the placement from both existing shareholders as well as new domestic and international investors.
“Austal’s largest shareholder, Tattarang, participated in the placement to its full pro rata allocation retaining their ownership of 19.6%, demonstrating their continued support for the company,” the announcement said.
The institutional placement to raise the $200 million, before costs, at $3.80 per share included a $50 million sell down of shares by Austro Pty Ltd (an entity associated with Austal’s former chairman and current non-executive director, Mr John Rothwell).
Approximately 52.6 million new shares will be issued under the placement.
Austal CEO Patrick Gregg thanked shareholders for their strong support for the placement.
“The support from Austal’s investors highlight the continued investor confidence in Austal’s growth strategy and vision,” Mr Gregg said.
“The success of this placement ensures that Austal is appropriately funded for the FA2 steel expansion shipbuilding expansion project, which once complete, will facilitate the delivery of large steel vessels in the current pipeline for the US Navy and US Coast Guard, well positioning Austal for the upcoming period of growth and execution.”
The initial capital raising document said Austal had a positive outlook with a record order book of $14.2 billion (including options). Finalisation of the proposed Strategic Shipbuilding Agreement with the Commonwealth is expected to further increase Austal’s order book.
In its 35 years of operations, Austal has built more than 350 vessels for 122 commercial and defence operators in 59 countries.
It is Australia’s largest defence exporter and first ASX-listed shipbuilder. The Company has industry-leading shipyards in Australia, the United States of America, Philippines and Vietnam, and service centres worldwide.
