London-listed mining services company Capital has successfully raised gross proceeds of £31-million, or $40-million, after issuing 28.5-million new common shares in the company at a price of 107p apiece.

The placing price represents a discount of about 5% to the closing price of existing issued common shares on November 20.

Capital says it received strong support from many of its large shareholders prior to the placing and respected the principles of pre-emption as far as possible through the allocation process.

The first tranche of placing shares, consisting of about 19.6-million new common shares and representing almost 10% of the company’s issued share capital, will settle on November 25, while the balance of fundraising shares – 8.9-million – will be subject to voting during a general meeting on December 11.

The net proceeds of the placing will support the group’s growth strategy as it seeks to capitalise on a highly favourable demand environment and a tightening mining equipment market.

Capital anticipates increased demand for its services across all operating divisions into 2026 and beyond, particularly following a sustained period of robust commodity prices, a surge in capital markets activity within the sector and increased exploration budgets across the company’s major customers and the sector in general.

“An enhanced liquidity position will enable the group to rapidly pursue and capitalise on growth opportunities as they arise,” says executive chairperson Jamie Boyton.

He adds that the company is pleased with the strong level of support received in this placing, which reflects the confidence of Capital’s shareholders and new investors in the business and growth opportunities that lie ahead.

Capital has a portfolio of long-term, mine site-based contracts with some of the world’s leading mining companies. The company provides a complete range of drilling and mining services, supporting projects from initial exploration phase through to full-scale production.

“With the highly favourable market demand backdrop, the proceeds from the placing will provide the balance sheet capacity needed to capitalise on this environment and move on the opportunities emerging across our divisions,” Boyton concludes.