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- Bowen Coking Coal (BCB) successfully completes an $85 million placement and will use the money to fund infrastructure guarantees, prepayments and growth
- The placement was undertaken in two phases, with sophisticated and professional investors signing up for more than 313.11 million shares at 30 cents per share
- Phase one of the placement is expected to settle on or around October 26, while phase two will settle on or around November 29
- Shares in Bowen close 13.33 per cent lower at 32 cents per share
Bowen Coking Coal (BCB) has successfully completed an $85 million placement and will use the money to fund infrastructure guarantees, prepayments and growth.
The placement was undertaken in two phases, with sophisticated and professional investors signing up for more than 313.11 million shares at 30 cents per share.
This price represents a 20-per-cent discount to Bowen’s last trading price of 37.5 cents on October 20 and a 17.3-per-cent discount to its 10-day volume-weighted average price.
Phase one of the placement is expected to settle on or around October 26, with shares to be issued on October 27, while phase two will settle on or around November 29, with shares to be issued on November 30.
Bowen Managing Director Gerhard Redelinghuys said a strong coal price environment had increased the near-term potential of the company’s assets but had also increased competition for access to infrastructure.
“The placement will provide the required capital to support guarantees and prepayments to secure this access alongside working capital to manage our ongoing ramp-up,” Mr Redelinghuys said.
Petra Capital acted as the sole bookrunner and a joint lead manager for the placement, while Morgans Corporate and Shaw and Partners also acted as joint lead managers.
Shares in Bowen closed 13.33 per cent lower at 32 cents per share.
