Southern Cross Electrical rattles tin for $165m, ups profit forecasts on new data centre contracts
The electrical contractor has gone into a trading halt to announce grand plans.
Southern Cross Electrical Engineering has ramped up its profit forecasts and is tapping investors for $165 million to support growing work from data centre developers.
The WA contactor on Monday went into a trading halt as it announced plans to raise $150m from institutional investors and $15m from existing retail shareholders to support $150m of new contracts.
The new institutional cash is being raised through a bookbuild at $3.85 to $4 a share, compared to Southern Cross Electrical’s close of $4.02 on Friday.
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By continuing you agree to our Terms and Privacy Policy.The raising was disclosed along with a trading update that included a forecast for annual profit growth of at least 33 per cent for the 2027 financial year.
The new contracts are spearheaded by work on NEXTDC’s S4 data centre in Horsley Park in NSW and an undisclosed centre in western Sydney.
Southern Cross Electrical said it had also been awarded a contract for electrical, instrumentation and controls works at Rio Tinto’s Pilbara operations.
“The awards announced today reflect the strong momentum we are observing across our business,” chief executive Graeme Dunn said.
“We are seeing a structural uplift in demand across data centres, infrastructure and renewable energy, supported by long-term growth drivers.
“We are also actively exploring a range of value accretive acquisition opportunities which offer us further geographic diversification and/or bring new capabilities into the group and which we expect will further drive growth.”
More to come...
