Site Group International raising $4m to fund its growth strategies

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By Lorna Nicholas - 
Site Group International raising ASX SIT growth strategies Kingdom of Saudi Arabia

Site Group is experiencing high demand for its apprenticeship programs in the Kingdom of Saudi Arabia.


Site Group (ASX: SIT) is on-track to secure the capital required to pursue its growth strategies, with a raising underway attracting “outstanding support” and the company approving a shortfall placement and an increase to the $3.9 million target.

As part of the previously announced entitlement offer, Site retained the right to place any shortfall of new shares not subscribed for by eligible shareholders at its discretion.

The company has entered into a trading suspension with “firm bids” for the shortfall placement due later today from “wholesale investors only”.

Additionally, Site’s board has approved acceptance of bids over the initial $3.9 million raising target.

At the end of April, Site revealed it had received bids from renowned investors including Lucerne Private, EGP Capital, Altor Capital, its own management team and existing shareholders.

“With the bids and feedback received so far and the ongoing investor discussions we are having, we feel well on track to be able to raise the capital required to pursue our stated goals and return to and exceed our previous milestones,” Site international operations director Vernon Wills said.

Capital raise of $3.9m

Site launched the entitlement offer to raise up to $3.9 million at the end of March – offering eligible shareholders the option to acquire one new share for every share owned.

The offer price of $0.003 per share represented a 25% discount to Site’s last traded price of $0.004 on 28 April.

Once the offer is complete, the company will issue at least 1.3 billion shares.

“After years of Covid-related disruptions, we are excited to pursue the opportunities ahead of us, such as developing our land holding in Clark and executing on our tangible $25 million-plus pipeline in Saudi Arabia,” Mr Wills said.

Clark Freeport and Special Economic Zone

Funds from the capital raise will be used to progress development of Site’s partly-owned lease-holding at the Clark Freeport and Special Economic Zone in the Philippines.

Within the Clark Freeport Zone, Site has a 38.4% interest in a 30-hectare site, which was valued at about $26 million in 2022.

The zone was established to decentralise economic activity in the Philippines away from Manila.

Site is working on increasing the value of its acreage by rezoning it for commercial development or sale.

Other activities

In addition to extracting value from the Clark acreage, Site provides training to companies in resources, construction, services and industrial sectors.

Funds from the capital raising will support the working capital requirements related to its growth in this division.

Last month, Site revealed it had experienced “rapid growth” in its trainee numbers for apprenticeship programs at its Maharat Construction Training Centre (MCTC) in the Kingdom of Saudi Arabia.