Austal Limited (ASX:ASB) Announces A$200 Million Institutional Placement
Funding Details
Austal Limited (ASX:ASB) has announced a non-underwritten A$200 million institutional placement to fund the expansion of its Mobile, Alabama shipyard. The Placement will comprise the issue of up to approximately 52.6 million new fully paid ordinary shares to be issued at a price of A$3.80, representing a 15.6% discount to Austal’s closing share price of A$4.50 on 10 March 2025; and 5.5% discount to Austal’s 30-day VWAP to 10 March 2025 of A$4.02.
Use of Proceeds
Net proceeds will partly finance the FA2 infrastructure expansion project, including a new assembly building, waterfront improvements, and a ship lift system. This will enable the delivery of large steel vessels for the US Navy and Coast Guard.
Share Purchase Plan
In addition to the Placement, Austal will offer eligible Austal shareholders the opportunity to apply for up to $30,000 of New Shares under the SPP at the Placement Price and free of any brokerage, commissions or transaction costs. The SPP will be capped at a maximum of $20 million.
Financial Outlook
Austal holds a record order book of A$14.2 billion and reconfirms its EBIT guidance for FY25 of not less than A$80 million. The company expects further growth through the Strategic Shipbuilding Agreement with the Commonwealth.
Executive Comments
CEO Patrick Gregg stated, “Austal has continued to successfully execute on its strategy and has grown strongly to become a leading player in the naval industrial complex in the US and Australia, with a highly strategic footprint across the US and Asia Pacific. With a record A$14.2bn order book, Austal has a strong and long pipeline of work and further ongoing opportunities including the SSA.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Austal. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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