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Acrow Formwork and Construction Services (ASX:ACF) raises $10.5m

Industrial
ASX:ACF      MCAP $323.9M
22 July 2021 15:50 (AEDT)

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Acrow Formwork and Construction Services (ACF) has raised $10.5 million to support further growth its industrial services and civil formwork businesses.

The company came out of a trading halt on Thursday and announced it had successfully raised the funds via a placement.

Under the offer, investors were offered 27.6 million new ACF shares at 38 cents per share — an 11.6 per cent discount on the company’s last traded price.

Acrow CEO Steven Boland said the raise was well supported by new and existing investors

“It is very pleasing to have received strong support from our existing shareholders and new shareholders which share Acrow’s vision of being the leading engineered formwork and industrial services scaffold solutions provider in Australia,” Mr Boland said.

The company will use the extra cash to fund further capital investment as well as numerous civil infrastructure opportunities in its growing industrial services and civil formwork businesses.

“The Industrial Services division has been successfully expanding its operations both within its incumbent Queensland market as well as into new east coast markets, especially NSW,” Mr Boland said.

“The funds raised ensures that this division, as well as the Formwork division, remain well resourced to capitalise on opportunities as we continue to expand.”

The placement is due to be settled on July 27, while the new ACF shares will begin being traded by July 28.

Acrow Formwork and Construction Services shares were up 2.33 per cent at 44 cents each at the close of market on Thursday.

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