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CARDNO (ASX:CDD) has raised $50 million in the first stage of its entitlement offer, as the engineering firm seeks to leverage its financial flexibility.
The institutional component of its fully underwritten 1-for-2.175 offer received strong support from shareholders, with 98 per cent of entitlements taken up.
The company aims to raise an additional $28 million from the retail component at the same offer price.
Cardno will utilise the capital as cash on the balance sheet to reduce debt and improve its financial position.
Cardno chairman John Marlay says the offer attracted strong demand from both existing shareholders and other investors.
"The offer attracted strong demand from Cardno's institutional shareholders who took up approximately 98 per cent of the new shares available to them under the offer," Marlay says.
"The success of the institutional component of the equity raising demonstrates strong support for the company and confidence in its ability to deliver on the strategic review actions previously identified, including getting the financial house in order, and to restore long-term value for shareholders."
The institutional entitlement offer is expected to be settled on December 8, with the new shares to commence trading the following day.
The retail entitlement offer will open on December 7 and close on December 16.
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