SRJ Technologies Raises A$2.5M Amid US$6M Middle East Joint Venture Win

Strategic Joint Venture Marks Regional Breakthrough

SRJ Technologies Group Plc (ASX, SRJ) has taken a significant step in its Middle East ambitions by entering into a 50, 50 joint venture with CAPSA Engineering & Contracting L.L.C (CEC), a National Oil Company-registered entity. The partnership centers on delivering a multi-year contract valued at over US$6 million, split into two phases, an initial 12-month design and implementation phase followed by a 24-month support and maintenance period.

With approximately 70% of the contract’s revenue expected to be recognised in the first year, this JV not only promises near-term cash flow but also establishes SRJ as a locally embedded player in a region known for its complex energy infrastructure and stringent regulatory environment.

Capital Raise to Support Growth and Execution

To underpin this expansion, SRJ is conducting a fully underwritten accelerated non-renounceable entitlement offer (ANREO) to raise around A$2.5 million. Priced at A$0.004 per new share, the offer is designed to strengthen the company’s balance sheet and fund operational requirements tied to the JV and broader regional strategy. This follows a recent A$356,600 placement to institutional and sophisticated investors, signalling growing confidence in SRJ’s Middle East pivot.

The capital raise is critical as SRJ restructures its operations, relocating key functions to the UAE and streamlining costs to align with local delivery demands. This financial backing also supports the company’s recent acquisition of an NOC-registered UAE entity, which together with the JV, forms a robust platform for direct client engagement and tendering opportunities.

Building a Trusted Asset Integrity Partner

SRJ’s CEO Kurt Reeves emphasised the JV as a milestone that transitions the company from market entry to active execution. By establishing a local delivery team and demonstrating capability through this initial contract, SRJ aims to cement its reputation as a trusted Asset Integrity and Maintenance (AIM) partner across key Gulf markets including the UAE, Saudi Arabia, and Qatar.

Chair George Gourlay highlighted the strategic validation the JV provides, underscoring the importance of local relationships and delivery performance in the region. The partnership with CEC not only opens immediate commercial opportunities but also positions SRJ to pursue additional joint ventures and contracts, accelerating its regional growth trajectory.

Looking Ahead

While the JV and capital raise mark a promising chapter, the success of SRJ’s Middle East strategy will hinge on execution, timely revenue recognition, and the company’s ability to secure further contracts in a competitive market. The upcoming months will be critical as SRJ emerges from voluntary suspension and begins trading its new shares, with investors watching closely for delivery milestones and financial performance updates.