ASX-listed telco Field Services Holdings (FSG) has announced it has raised $20 million in new capital from new and existing investors via an institutional placement.
The funds will be used for the telco’s “organic growth strategy” while also providing flexibility for potential acquisition opportunities. Some of the proceeds will also finance FSG’s rollout of its Regional Australia Network (RAN) to be built across regional and rural areas.
RAN, which will provide broadband, 4G and 5G connectivity and IoT mobile services, was announced in July along with a mobile virtual network operator (MVNO) agreement with Optus.
FSG will build, construct and operate the network and trial domestic roaming with Optus’
nationwide mobile network.
“We are extremely pleased to receive strong support from new and existing shareholders in this capital raise,” FSG chief executive Andrew Roberts said.
“The additional funding will allow us to support working capital in the roll-out of our Regional Australia Network (RAN), covering 6 states and allow capability to extend further if opportunities arise to increase coverage and capability.”
The capital raise involved the issuance of more than 121 million new FSG shares at $0.165 cents per share. Canaccord Genuity Australia Limited and Petra Capital Pty Ltd were tapped as joint lead managers and bookrunners.
“Very pleased to have outstanding support provided by significant cornerstone funds not previously invested, and further support from existing holders, this is a great boost to see such confidence in our vision to build a network for rural, regional and remote Australia,” Roberts said.
“We would once again like to thank our existing and new shareholders for supporting us in the exciting transaction and look forward to continuing to provide updates on the ongoing roll-out of FSG’s Regional Australia Network across rural, regional and remote Australia.”
The rollout started in August 2021 and expects the services will be released commercially later in the current financial year.
The placement is the company’s most recent cash injection to fund its growth plans, after securing a $900,000 grant from the Federal Government’s Mobile Blackspots Program, $3.66 million to trial a Neutral Host model and $3.19 million to build 15 towers across New South Wales, Western Australia and Queensland.