Construction firm floats new shares
Construction materials group Buildmax (BDM) on Thursday floated 179m new shares to raise R310m, which will be issued to partly pay for the recent acquisitions, it said on Thursday.
The share opened at R2,25, a 25% premium to the R1,80 a share in the pre-listing private placement.
The capital raised will be used partly to fund the recent acquisition of Diesel Power, open cast mining and earthmoving contractors in South Africa, which followed the earlier acquisition of the Buildco group of companies in December 2007.
The company earlier raised R250m via a private placement of R138,9m shares at 1,80 cents each and a further R61m by the issue of 40m shares to a BEE consortium led by Vuwa Investments, an existing Buildco shareholder.
The capital raised will further be used to reduce group debt and fund organic growth.
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