Steppe Cement to raise GBP10m Via Underwritten Offer

Steppe Cement said Wednesday it intends to raise GBP10m (EUR12.5m) via an offer for subscription of 40 million new ordinary shares at 25 pence per share.

Net proceeds of the offer are expected to be up to GBP9.67m after expenses and will be used toward the completion of the reconstruction of Dry Line 5, for general working capital requirements and, if required, to repay a portion of the company's short-term bank borrowings.

The offer price represents a discount of 6.1% to the closing middle market quotation of a Steppe Cement Ordinary Share on Nov. 1 and an 8.1% discount to the volume weighted average price of 27.2192 pence per share for the last 30 trading days.

Each subscription under the offer must be for a minimum of GBP85,000.

The offer opens on Wednesday and closes at 1500 GMT 30 November.

The offer is conditionally underwritten by existing substantial shareholders Asian Investment Management Services Ltd., Halfmoon Bay Capital Ltd., Mango Bay Enterprises Inc and Portola Group Ltd.