The Service Stream Limited (ASX: SSM) share price is gaining today following the opening of the company's retail entitlement offer.
Service Stream released its retail offer booklet before the ASX opened this morning.
As part of the retail offer, eligible Service Stream shareholders will be able to purchase 1 share for every 3 shares they already own, paying 90 cents per share for the extra holding.
Right now, the Service Stream share price is 94 cents – 1.08% higher than its previous close.
Service Stream is a provider of telecommunication and network services.
Let's take a closer look at today's news from Service Stream.
Retail entitlement offer
The Service Stream share price is gaining today following the company announcing its retail entitlement offer was open as of 10am this morning.
The retail entitlement offer is the final piece of the company's capital raising puzzle. It follows a $130 million institutional entitlement offer and placement that successfully closed on 22 July.
The retail entitlement offer is expected to raise another $55 million. It's set to close at 7pm on 9 August.
To be eligible for the retail entitlement offer, Service Stream shareholders must have been a registered shareholder as of 23 July and live in Australia or New Zealand.
The company is raising the cash to purchase Lendlease Group's (ASX: LLC) non-core services business for $310 million.
The Lendlease Services business provides services across the telecommunication, utilities, and transport sectors.
Service Stream's acquisition of Lendlease Services was announced on 21 July.
Service Stream share price snapshot
The Service Stream share price is badly in need of today's gains.
Right now, it is 47% lower than it was at the start of 2021. It has also fallen 48% since this time last year.
The company has a market capitalisation of around $381 million, with approximately 416 million shares outstanding.
