$62m issue from Dransfield

DRANSFIELD Holdings, a distributor of electrical equipment, personal care products and food and beverages, is raising $62.1 million from its new issue, which opens for public applications today.

The company is offering 57.5 million new shares at $1.08 each, with a price-earnings multiple of 6.2.

Net proceeds of the issue will amount to $54.1 million, of which $15 million will be used to acquire new machinery for a joint venture in Chonghua, Guangdong.

A further $23 million will go towards expansion of its warehousing and delivery services, with $16.1 million reserved as additional working capital.

Dransfield estimates that its profit for the year ended March 31 will not be less than $30 million, an increase of 88 per cent over the previous year.