CSG to raise $40 million in new equity

CSG to raise $40 million in new equity

The integrator has entered into a trading halt as it sets out capital raising plans

ASX-listed integrator CSG (ASX:CSV) has entered a trading halt as it seeks to raise $40 million in new equity.

It plans to do this through a fully underwritten institutional placement where it plans to raise $10 million and non-renounceable accelerated pro rata entitlement offer to produce about $30 milllion.

Net proceeds of the offer will be used to meet upcoming contracted capital payments and to ensure CSG retains a prudent level of debt and funding headroom for operational flexibility.

Under the offer, eligible shareholders will be invited to subscribe for 1 new CSG share for every 9 existing CSG shares. A record date has been set for April 19 to determine the entitlement offer.

The offer price is fixed at $1.10 per new share, which represents a 15.4 per cent discount to the closing price of CSG shares on April 13. All new shares issued under the offer will rank equally with existing CSG shares from allotment.

Further details on the capital raising initiative will be released on April 21.

CSG was trading at $1.30 at the time of publication.

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