Worleyparsons Limited (ASX: WOR) shares bounced 10% on Wednesday following multiple press releases and updates from the $7 billion Sydney-based engineering and construction company.
Dar Group To Take Up Full Rights
Following a decision to acquire the Energy, Chemical and Resources division of Jacobs Engineering Group Inc (NYSE: JEC), WorleyParsons told the ASX on Wednesday that its largest shareholder, Dar Group, had taken-up 100% of its entitlements under the institutional share offer (totaling $185 million) and it will take up any of its retail entitlements ($476 million).
Click here to learn what a capital raising and entitlement offer mean.
In addition, Dar Group, a Lebanon-based consulting and engineering company, instructed Citigroup to increase its swap notional amount by $86 million, equivalent to 100% of its entitlement offer.
Contract Wins
Adding to the good news day, WorleyParsons announced contract wins with Lundin Norway ASO for a project on the Norwegian Continental Shelf.
“WorleyParsons is proud to be selected to execute this important brownfield modification project for Lundin Norway,” CEO Andrew Wood said.
In addition, ConocoPhillips U.K. Ltd has awarded WorleyParsons an engineering and construction (E&C) services contract and an engineering, procurement and construction (EPC) contract.
The company didn’t put a dollar-value next to the project announcements. But with a positive spin on the capital raising, the market seems to like the project wins.
WorleyParsons shares were trading 10% higher in the final hour of ASX trading on Wednesday.
Investing Is Hard
Capital raisings, trading halts, good news, bad news. Investing is hard.
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