Austal Completes $200M Placement, Trading Resumes

Austal (ASX:ASB) has successfully completed a A$200 million institutional placement at $3.80 per share to fund the expansion of its US shipbuilding capability. The placement received strong support from existing shareholders and new domestic and international investors. Tattarang, Austal’s largest shareholder, participated pro rata, retaining its 19.6% ownership. Net proceeds will fund the FA2 infrastructure project, enabling the delivery of large steel vessels in the USA for the US Navy and US Coast Guard. Approximately 52.6 million new shares will be issued under the placement, ranking equally with existing shares. Settlement occurred on March 14, 2025, with trading resuming following the announcement. CEO Patrick Gregg expressed gratitude for investor support, highlighting confidence in Austal’s growth strategy. The company is also launching a Share Purchase Plan (SPP) for eligible shareholders in Australia and New Zealand, capped at $20 million, offering shares at the same price as the placement, without brokerage fees. Austro Pty Ltd, associated with Austal’s former Chairman John Rothwell, sold 13.2 million shares at $3.80 each, representing 41.4% of Rothwell’s holding. Rothwell remains a non-executive director and has committed to a six-month moratorium on further share sales. The FA2 steel expansion project positions Austal for growth and execution in the US shipbuilding market. The SPP offer opens around March 18, 2025, and is expected to close on April 1, 2025, with new shares issued on April 8, 2025. Austal reserves the right to amend the timetable. This announcement follows a trading halt requested by Austal pending an announcement regarding an equity raising.