Newly-listed wheel maker Carbon Revolution is back in front of investors seeking a $30 million equity injection.
Stockbrokers E&P and Bell Potter launched the raising at $2.10 a share on Monday morning, which was a 16 per cent discount to the last close.
The deal launched amid expectations Australia’s equity market could fall significantly on Monday, making Carbon Revolution one of the brave and only equity raisers in the market.
Carbon Revolution makes lightweight carbon-fibre wheels. Penny Stephens
The brokers were seeking bids for 11.9 million new shares to be issued via an institutional placement.
The placement was to be followed by a non-underwritten share purchase plan to raise up to another $5 million.
Funds raised were pegged for working capital, operating expenditure and to bolster the company’s bank account. While full details are yet to hit screens, fundies suspect its about bolstering working capital to push out the company’s carbon wheels via sea freight.
The raising comes four months after Carbon Revolution listed on the ASX. The company raised $90.1 million at $2.60 a share for its initial public offering.
