Global Construction Services has relaunched its troubled $32 million capital raising at a sharply reduced offer price.
GCS' new offer has been cut from 85 cents a share to 60 cents and managers are seeking to place a smaller proportion of the newly issued shares with institutions.
The original offer was withdrawn yesterday after brokers failed to complete a $14.7 million placement. Under the revised figure, that offer has been cut to $10.4 million.
An entitlement issue for institutional and retail investors has been increased to $21.8 million from $17.8 million. The shares are now being issue on a five-for-16 basis.
The overall capital raising had increased slightly from $32.1 million to $32.2 million. If successful, it will lead to a greater dilution of existing shareholders, particularly those who don't participate in the entitlement offer.
The construction services provider is raising the money to reduce debt and bolster working capital.