The Field Solutions Holdings Ltd (ASX: FSG) share price is heading north after the company announced its completed capital raise.
During late-afternoon trade, the regional telco carrier's shares are swapping hands for 18 cents a pop, up 9.09%.
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Details of the share placement
Investors are buying up Field Solutions shares after the company released the latest results of its capital raising efforts.
In the release, Field Solutions advised it has received firm commitments to raise $20 million through an institutional placement. The offer was presented to institutional and professional investors at an issue price of 16.5 cents per share. This equates to approximately 121.2 million new ordinary shares being added to the company's registry.
Field Solutions highlighted that it received applications totalling more than $40 million, reflecting strong interest from institutional and sophisticated investors.
The company said it would allocate the proceeds towards funding the company's growth strategy and providing flexible opportunities when accelerating its network expansion.
Field Solutions will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval (78,472,768 shares). The company will use an extension to the listing rule (listing rule 7.1A) to issue the remaining shares with the additional 10% capacity (55,648,512 shares).
What did management say?
Field Solutions CEO Andrew Roberts said:
The additional funding will allow us to support working capital in the roll-out of our Regional Australia Network (RAN), covering 6 states and allow capability to extend further if opportunities arise to increase coverage and capability.
… To have outstanding support provided by significant cornerstone funds not previously invested, and further support from existing holders, this is a great boost to see such confidence in our vision to build a network for rural, regional and remote Australia.
Field Solutions share price review
Since listing in October, Field Solutions shares have accelerated to post a gain of more than 300%. The company's share price is about 14% off its 52-week high of 21 cents reached last month.
Based on today's price, Field Solutions presides a market capitalisation of roughly $100.1 million, with around 556.5 million shares on issue.
