Vulcan Steel Raises A$87.1M via Entitlement Offer at Premium Price

Entitlement Offer Completion and Capital Raise

Vulcan Steel Limited has announced the successful completion of its 1 for 9 fully underwritten pro rata accelerated renounceable entitlement offer, raising gross proceeds of approximately A$87.1 million. This capital raise involved the issuance of 14.6 million new shares, marking a significant injection of funds for the industrial product distributor.

The retail shortfall bookbuild, conducted after market close on 16 September 2025, saw approximately 2 million new shares sold at a price of A$7.20 each. This price represents a premium of A$1.25 above the original offer price of A$5.95 per share, providing a financial benefit to eligible retail shareholders who did not fully take up their entitlements.

Strategic Acquisition Funding

The funds raised through this entitlement offer are earmarked to support Vulcan’s acquisition of Roofing Industries Limited. This move is a clear step in Vulcan’s growth strategy, aiming to broaden its product offerings and enter a new vertical within the industrial products sector. The acquisition is expected to accelerate Vulcan’s expansion and enhance its market position.

Rhys Jones, Vulcan’s Managing Director and CEO, expressed satisfaction with the strong shareholder support across both institutional and retail components of the offer. He emphasized the fairness of the offer structure and its role in securing the necessary funding for the acquisition.

Shareholder Benefits and Next Steps

Eligible retail shareholders who did not fully subscribe to their entitlements will receive a retail premium of A$1.25 per share sold in the shortfall bookbuild, expected to be paid around 29 September 2025. The new shares will be allotted and commence trading on both the ASX and NZX on 22 September 2025, ranking equally with existing shares and entitling holders to future dividends.

Scaling was applied to institutional and broker bids as well as additional applications from retail shareholders, ensuring an equitable allocation consistent with the offer’s policy. Vulcan’s extensive logistics and processing network, with 66 facilities and approximately 1,350 employees, positions it well to integrate the new acquisition and capitalize on growth opportunities.

Looking Ahead

While the entitlement offer’s completion marks a milestone, investors will be watching closely for further details on the Roofing Industries acquisition’s integration and its impact on Vulcan’s financial performance. The company’s ability to leverage this acquisition effectively will be critical in sustaining momentum and delivering shareholder value.