DIVERSIFIED supplier of equipment and open cast mining services and construction materials Buildmax revised its listing on the JSE main board, yesterday floating 179 million new shares to raise about R310m in capital.

CEO Paul de Klerk said the group would use the funds to reduce debt and finance growth.

Buildmax’s share price opened at R2,25, a 25% premium to the R1,80 per share in the pre-listing private placement, giving it a market capitalisation of R2bn on listing of the new shares from a mere R100m previously.

Foreign investors took about 40% of the private placement. The group raised a further R61m by the issuing of 40- million new shares to a black economic empowerment consortium led by Vuwa Investments, an existing shareholder in its subsidiary Buildco.

The capital raised would be used partly to fund the acquisition of Diesel Power. Through this acquisition, as well as that of Buildco, Buildmax has repositioned itself as a supplier of equipment, mining services and construction material.

This is expected to drive growth with revenue forecast to grow to R1,7bn, profit from operations to R373m and profit after tax to R201m.