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MAAS GROUP HOLDINGS LIMITED

Proposed issue of securities - MGH Share

Announcement Type: Capital Raising Proposal

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28 November 2024 12:43 PM. Open PDF | 5 Pages

Maas Group Holdings Limited (MGH) proposes to issue 43,010,754 ordinary fully paid shares at AUD 4.65 per share on December 4, 2024, primarily to fund acquisitions and enhance its financial capacity for growth.

Summary

• Maas Group Holdings Limited (MGH) announced a proposed issue of 43,010,754 ordinary fully paid shares.
• The issue price is AUD 4.65 per share.
• The proposed issue date is December 4, 2024.
• The total number of securities to be issued is 43,010,754.
• The funds raised will be used to partially fund acquisitions and enhance the company's financial capacity for growth.
• Macquarie Capital (Australia) and Morgans Corporate Limited are acting as lead managers/brokers.
• A fee of 2.00% of the gross proceeds plus an incentive fee of 0.50% (at the company's discretion) is payable to the lead managers/brokers.

Sentiment

Score: 7

Explanation: The announcement reflects a proactive approach to growth through acquisitions, which is generally positive. However, the dilution of existing shares and inherent risks associated with acquisitions temper the overall sentiment.

Highlights

• Proposed issue of 43,010,754 ordinary fully paid shares
• Issue price: AUD 4.65 per share
• Proposed issue date: December 4, 2024
• Funds raised will be used for acquisitions and growth initiatives
• Lead managers/brokers: Macquarie Capital (Australia) and Morgans Corporate Limited
• Fees payable to lead managers/brokers: 2.00% of gross proceeds + 0.50% incentive fee (discretionary)

Positives

• Securing additional capital to fund acquisitions and growth.
• Engagement of reputable lead managers/brokers (Macquarie Capital and Morgans).

Negatives

• Dilution of existing shareholder ownership.

Risks

• The success of the acquisitions funded by the capital raising is not guaranteed.
• Market conditions could impact the success of the capital raising.
• Potential for unforeseen expenses related to the acquisitions or capital raising.

Future Outlook

The capital raising will partially fund acquisitions announced in an investor presentation and enhance the company's financial capacity for growth and other near-term acquisition initiatives.

Industry Context

This capital raising is consistent with industry trends of companies seeking to expand through acquisitions and capitalize on growth opportunities. The engagement of Macquarie Capital and Morgans suggests a degree of market confidence in the company's prospects.

Next Steps

• Completion of the proposed share issue on December 4, 2024.
• Use of proceeds to fund acquisitions and growth initiatives.

Key Dates

• 28/11/2024: Date of announcement
• 4/12/2024: Proposed issue date