Rakon seeks $65m for expansion
- 21 September, 2009 22:00
Technology company Rakon will seek to raise $65 million to pay for a new Chinese manufacturing facility.
The company has gone into a trading halt on the NZX while it organises an institutional placement of shares.
The institutional placement is planned to raise $45 million, while the rest will come from existing shareholders. The placement price has been underwritten at $1.10 a share.
Rakon's shares are expected to be in trading halt till tomorrow.
The new manufacturing plant is being built in conjunction with Rakon's Chinese joint venture partner Timemaker.
Rakon put its Chinese expansion on hold last year during the global economic turmoil. But managing director Brent Robinson said the scale of earnings growth opportunities in front of the company "gives us confidence that now is the right time to proceed".
Rakon manufactures GPS crystals in New Zealand, China, the UK and France.