TClarke PLC, the construction engineer, has conditionally raised gross proceeds of £10.7mln to strengthen its balance sheet in order to help it win contracts.
The placing, at a price of 122p that represents a 14% discount to the last close, depends on shareholder approval at a meeting scheduled for 24 July.
The group reported a net cash position of £4.5mln as at 30 June 2023 and a forward order book of £781mln, up from £586mln a year ago.
The company said the placing proceeds "will further strengthen the group's balance sheet and will provide additional resources with which to capture and deliver additional identified short to medium term attractive contract opportunities in the London business - in doing so driving further growth and margin expansion".
Directors anticipate "significant earnings accretion deployment" of the net placing proceeds into the delivery of anticipated near-term contract wins.
TClarke's largest shareholder, Regent Gas Holdings, has subscribed for 4mln shares at the placing price.
The shares fell 6% to 133.07p in early trading on Thursday.