Site Group secures $2 million+ bids in capital raise as it pursues post-covid recovery in Saudi and the Philippines
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Site Group is looking to use funds from its strongly supported capital raise to continue its post Covid-19 pandemic recovery and return to previous milestones.
Site Group International (ASX:SIT) has had outstanding support for its capital raise including bids of ~$2 million from professional, sophisticated, and key investors, among them Lucerne Private, EGP Capital, Altor Capital, as well as management.
SIT is a specialist in the delivery of education and training to global companies in the resources, construction, services, and industrial sectors.
Among the company’s clients are the likes of global heavyweights ExxonMobil, Saudi Aramco, GE and OceanaGold.
SIT has been an example of the effects of covid-19 on a thriving Australian business, with revenues collapsing from almost $31 million in FY19 to around $7m in FY22 and the share price dropping by 95% to a market cap of less than $4 million in March 2023.
However, SIT is confident investors can now capitalise on a post-pandemic recovery, with company on track to meet and surpass their previous milestones within the next couple of years.
“With the bids and feedback received so far and the ongoing investor discussions we are having, we feel well on track to be able to raise the capital required to pursue our stated goals and return to and exceed our previous milestones,” SIT International Operations Director of Site Group, Vernon Wills said.
SIT entered into a trading halt this morning for the purpose of completing a capital raise to raise approximately $3.9 million, through a combination of the recently completed 1:1 entitlement offer and the wholesale shortfall placement.
Wholesale investors can visit Site’s placement resources page for more information.
The company says that its Board has now approved the acceptance of bids over the initial raise target of $3.9 million.
The placement is being conducted under the same terms as the recent entitlement offer at an issue price of $0.003 per new share, representing a discount of 25% to the last traded price on 28 April.
Funds will also be used for ongoing working capital requirements including pursuing SIT’s global revenue pipeline, pay down shareholder loans, and covering costs of the offer.
Funding will also be used to progress SIT’s development of the remaining share in the lease holding at the Clark site in the Philippines.
SIT owns a 38.4% stake at the Clarke site following a partial sale of shares in Site Group Holdings Pty Ltd in H1 FY23.
The 30ha leasehold facility in Clark Campus is a location that’s attracting major investments in a drive to diversify the country’s infrastructure away from Manila.
Some of the biggest hotel brand names in the world, including the Marriott, Hilton and Swissotel all set up hotels in the Clark area.
Around 10% of the 30ha is designated as a training development area, and includes a GE owned turbine (worth ~$US70 million), as well as an OceanaGold underground mine simulation environment – both for training purposes.
SIT recently announced it had signed up an additional 100 apprentices to its the Maharat Construction Training Centre (MCTC).
The company has also inked deals with seven contracting companies to send 200 trainees to study an Associate Diploma of Construction Safety at the King Abdulaziz Center for World Culture – Ithra in Dammam, Kingdom of Saudi Arabia.
SIT said the rapid growth in trainee numbers validates significant demand for training and underscores the necessity to expand the MCTC training centre capacity.
This article was developed in collaboration with Site Group International, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.