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At $1.63 per share the price represents a 15.5 percent discount on Vocus' closing share price on 3 July. The placement is fully underwritten by Credit Suisse (Australia). The offer to existing shareholders, which is not underwritten, will enable eligible Australian and New Zealand shareholders to purchase up to $15,000 worth of shares each at the same price.
Vocus said the funds would be used "to fund the company's growth strategy and provide working capital," adding "Vocus continues to consider potential acquisitions that would expand or complement its existing product set."
It said the capital raising would "ensure conservative gearing is maintained, as well as provide flexibility to fund growth initiatives including extension of the fibre network."
If both initiatives raise the maximum amount the company will have cash of $25.3m and total debts of $35.5m of which $28.1m is for indefeasible rights of use to sub sea cables.
In the financial year just ended it invested $8.13m in its fibre network, $1.98m in data centres and $1.49m in its core network.
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