SRJ Technologies Group Plc (ASX: SRJ), a company delivering asset integrity products and solutions to the energy and maritime industries, has announced a strategic 50:50 Joint Venture Agreement (JVA) with CAPSA Engineering & Contracting L.L.C (CEC), a National Oil Company (NOC)-registered entity in the Middle East. The JVA aims to deliver a multi-year scope of work valued at over US$6 million. To support its growth strategy, SRJ is also launching a fully underwritten pro-rata accelerated non-renounceable entitlement offer (ANREO) to raise approximately A$2.5 million.
Under the JVA, SRJ and CEC will collaborate on a project divided into two phases: an initial 12-month period focused on design, implementation and configuration, followed by a 24-month support and maintenance phase. SRJ expects to recognise approximately 70% of the total contract value within the first 12 months. SRJ will provide project management services, while CEC will handle project execution and be responsible for meeting all obligations to the NOC.
The Joint Venture marks a significant step in SRJ’s regional strategy, complementing the recent agreement to acquire an NOC-registered UAE entity. These initiatives establish a platform for immediate commercial entry into the Middle Eastern market, the creation of a local delivery team, and the pursuit of direct contracts with regional clients. SRJ’s CEO, Kurt Reeves, stated that the JV is a major milestone that will enable the company to begin delivering services immediately and build its capabilities in the region.
The Entitlement Offer is structured as an 8-for-9 ANREO, with new CDIs (Chess Depositary Interests) offered at A$0.004 each. Eligible shareholders as of 5:00 PM (Sydney time) on Tuesday, 5 August 2025, are invited to participate. The institutional component of the offer is already underway, with the retail offer scheduled to open on Friday, 8 August 2025, and close on Tuesday, 19 August 2025. Peloton Capital Pty Limited is acting as the sole lead manager, underwriter and bookrunner for the Entitlement Offer.
