Austal has raised AUD 200 million through an institutional placement to support the expansion of its US shipbuilding capabilities.
The placement, priced at $3.80 per share, was met with strong demand from existing shareholders and new domestic and international investors, Austal said in an ASX announcement.
Additionally, Austro Pty Ltd, an entity linked to Austal’s former chairman and current non-executive director John Rothwell, sold $50 million worth of shares as part of the transaction.
Austal’s largest shareholder, Tattarang, participated fully in the placement, maintaining its 19.6 per cent stake in the company.
The funds will be allocated to the FA2 infrastructure expansion project, aimed at enhancing the company’s capacity to deliver large steel vessels for the US Navy and US Coast Guard.
Austal CEO Patrick Gregg expressed gratitude for the investor support, stating that the placement underscores confidence in the company’s growth strategy.
“The success of this placement ensures that Austal is appropriately funded for the FA2 steel expansion shipbuilding project, which will facilitate the delivery of large steel vessels in the current pipeline for the U.S. Navy and U.S. Coast Guard,” he said.
Approximately 52.6 million new shares will be issued under Austal’s existing placement capacity under ASX Listing Rule 7.1, with settlement scheduled for 14 March 2025.
These shares will rank equally with existing shares, the company noted.
The company also reaffirmed its Share Purchase Plan (SPP), offering eligible shareholders in Australia and New Zealand the opportunity to acquire up to $30,000 in new shares at the placement price, free of brokerage and transaction costs.
The SPP is capped at $20 million and will open on 18 March 2025, running for approximately two weeks, subject to early closure if fully subscribed.
