Southern Cross Electrical Engineering raises $150M

• Southern Cross Electrical Engineering completed a $150 million fully underwritten institutional placement by issuing approximately 37.5 million new shares.
• The placement was priced at $4 per share, representing a 0.5% discount to the last traded share price of $4.02.
• The company stated that the capital will support working capital for new works and fund potential future corporate acquisitions.

Southern Cross Electrical Engineering (ASX:SXE) has raised $150 million through a fully underwritten institutional placement of approximately 37.5 million shares to strengthen its financial position and fund growth opportunities.

The placement price of $4 per share reflects a 0.5% discount to the company's prior closing price of $4.02 on June 12 and a 1.2% discount to its 5-day volume-weighted average price of $4.05.

“We are very pleased with the outcome of the placement,” said SCEE Group Managing Director Graeme Dunn.

The capital raising was executed under the company's existing placement capacity, with official settlement scheduled for June 19.

Following the announcement, the Southern Cross Electrical Engineering share price was unchanged at $4.02.

The company also announced plans to offer a non-underwritten share purchase plan to eligible retail investors to raise up to an additional $15 million.

The board intends to deploy these new funds towards expanding geographic diversification and adding technical capabilities through future acquisition opportunities.