SUPERLOOP (ASX:SLC) plans to expand its telecommunications infrastructure network across Asia after launching an entitlement offer to raise $35.3 million.
Shareholders will be able to subscribe for one new share for every seven held for $2.10 apiece under the offer.
The issue of about 16.8 million shares represents a 12.9 per cent discount on the Brisbane-based company's share price before entering a trading halt last Friday.
Superloop will use the funds to invest in the Hong Kong TKO Express domestic submarine cable project, expand its fibre networks in Hong Kong and Singapore and as general working capital.
The submarine cable will connect Superloop's core network in the data centre campuses of Chai Wan and Tseung Kwan O Industrial Estate. The tech hub will house 13 data centres and service a range of financial, media and technology companies.
The underground network in Singapore spans 132km with eight data centres, two cable landing stations and 14 commercial enterprises connected. The company has set an initial target to secure 25 businesses.
The 110km Hong Kong network is expected to be completed at the end of this year, with a target of 30 strategic sites.
Superloop founder and executive chairman Bevan Slattery (pictured) holds a 51 per cent stake in the company and has indicated he will not be exercising his entitlements.
Slattery's holding will decrease to 44.7 per cent following the offer, however the company says the dilution is 'unlikely' to impact his control.
The issue was opened to institutional investors over the weekend, with the retail entitlement offer to open on June 24.
Shares under the institutional entitlement offer are expected to be issued on June 29, while retail shares will be issued on July 19.
Read More: What makes Slattery king of the ASX
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support