By Peter Roberts
Defence, space and communications group Electro Optic Systems (ASX: EOS) has raised $85 million from investors and shareholders, confirming investor appetite for progressive manufacturers.
The company announced it had raised $17 million – $10 million more than initially sought – in a share purchase plan from existing shareholders.
This came on top of the recent success in placing $68 million in new shares with institutional investors.
Shareholders acquired the latest tranche of new shares for $6.66 a share, a small discount to yesterday’sclosing price of $6.99.
The company now has a market capitalisation of $960 million.
The EOS raising follows numerous stellar share market performances by high profile manufacturers:
# Two days ago Bubs Australia (ASX: BUB) raised $35 million to boost production of infant formula.
# Three days ago carbon fibre wheel producer Carbon Revolution (ASX: ) surged 37 per cent on debut having raised $90 million from investors.
# In October high-speed welding technology developer K-TIG (ASX: KTG) rejoined the stock exchange after raising $7 million.
Other manufacturing highlights include in June when shipbuilder Austal (ASX: ASB) joined the S&P ASX 200 share index. The company is now valued at $1.3 billion.
There is no doubt investors have a ealthy appetite for manufacturing stocks if they have technology, market savvy and can demonstrate a way forward.
No example could be clearer than blood products and vaccine group CSL (ASX: CSL), whose shares have gown from a low of $173 this year to yesterday’s closing of $282.15.
The stock market has not always supported manufacturers – but it certainly is prepared to now.
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