ASG share sale nets an additional $10 million

ASG share sale nets an additional $10 million

Additional equity to go into datacentre construction

ASX-listed services provider, ASG Group (ASX: ASZ) has placed an additional 8.3 million new shares into the market, and raised an additional $10 million in equity.

The shares went for $1.20 per share, at a discount of 5.9 per cent to the closing price of ASG shares at the time.

The equity will be used to fund the construction of a new datacentre in Perth and strengthen the Group’s balance sheet.

In a statement, ASG CEO, Geoff Lewis, said: “As previously disclosed, we see the construction of the Perth Datacentre as providing an additional competitive advantage to ASG through the enhanced client experience it allows us to deliver.

"Our clients have recognised this with the initial expected capacity of the Datacentre already 70 per cent contracted.

"While comfortable with existing gearing levels, the raising will ensure that we retain appropriate capacity to continue to fund both the organic and acquisition growth opportunities we see for the business, with minimal dilution to non participating shareholders.”

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Tags ASG GroupAustralian Stock Exchange (ASX)share salePerth datacentre

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