ALS shares dive after completing $350m share placement
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The news: Shares in testing and verification services firm ALS plunged at the open after it reported the completion og a $350 million discounted institutional share placement to fund growth in its laboratory network and M&A activity.
The numbers: ALS shares fell 7.99% to $16.20 in early trading just after the business announced it had raised $350 million by issuing 21 million new shares at a price of $16.70 each.
The raise price amounted to a 5.3% discount on the last close price on Monday and a 5.7% on the five day volume weighted average price. The new shares will commence trading on 2 June.
A forthcoming share purchase plan, which is targeting a raise of up to $40 million, will also offer shares at the lower of $16.70, or a 2% discount on the five-day volume weighted average price at the close of the plan offer period on 20 June.
Following ALS’ FY25 earnings result yesterday, RBC Capital Markets analyst Nicholas Daish said the equity raise "appears curious". Ahead of the result, Jarden analysts downgraded their position on the stock.
What they said: “The $230 million funding for our four upgraded laboratory hubs will ensure that ALS is well positioned to continue delivering on the value creation framework objectives,” ALS CEO and managing director Malcolm Deane said.
The source: ASX
