The West

GCS relaunches capital raising - at lower price
GCS relaunches capital raising - at lower price

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The original offer was withdrawn yesterday after brokers failed to complete a $14.7 million placement.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.

The West Australian

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