The NRW Holdings Ltd (ASX: NWH) share price has lifted 1.96% in early trade and is one to keep an eye this week after a share purchase plan announcement last week.
Why NRW Holdings shares are worth watching
NRW Holdings is a diversified mining, energy, civil infrastructure and urban development contractor.
The group announced a $10 million share purchase plan (SPP) on Friday as part of its latest acquisition.
The offer price of $2.85 per share could appeal to shareholders given the steep discount on Friday's $3.06 closing price.
Shareholders can subscribe for up to $15,000 of new shares without brokerage or transaction costs. The offer is non-renounceable and cannot be transferred.
ASX shares often fall lower on capital raising announcements in line with corporate finance theory. While NRW Holdings shares are rising this morning, they will be worth watching in this week's trade.
What's behind the latest acquisition?
NRW's BGC Contracting acquisition could extend the group's capabilities in contracting services.
NRW Holdings shares are up 17.73% in the last month after announcing the $116.4 million purchase on 28 November.
BGC Contracting provides services to the resources, energy and infrastructure sectors across 3 businesses – Mining, Construction and DIAB Engineering.
The acquisition will add BGC Contracting's existing contract portfolio and $1.5 billion order book to NRW's existing operations. This brings NRW's combined order book to $4.0 billion with $2.2 billion scheduled for delivery in FY20.
NRW Holdings shares rocketed higher on the news last week to close at $3.06 per share on Friday – up 91.25% since the start of January – and have continued to rise today to $3.12 at the time of writing.
Foolish takeaway
NRW has been a top performing stock this year and has raced ahead of the ASX 200 and its peers.
The S&P/ASX 200 Index (INDEXASX: XJO) is up 23.18% in 2019 on low rates and economic growth across the globe.
However, NRW shares have made those returns look very mediocre amid strong earnings and steady expansion.
