Acrow Limited Secures $16 Million in Oversubscribed Share Purchase Plan Backed by Strong Shareholder Demand

Robust Shareholder Participation Drives $16 Million Capital Raise for Acrow

Acrow Limited announced the successful completion of its Share Purchase Plan, which attracted strong support from eligible shareholders nationwide. Valid applications amounted to approximately $21 million from about 1,500 shareholders, reflecting solid confidence in Acrow’s strategic direction. This participation significantly surpassed the original $10 million underwritten amount, fully guaranteed by Morgans Corporate Limited and Shaw and Partners Limited. The 21% participation rate underscores substantial shareholder enthusiasm for the capital raise and the company’s growth prospects.

In response to this strong demand and to reward shareholder confidence, the Board exercised its discretion to accept $16 million in SPP applications, $6 million above the underwritten amount. This decision balanced shareholder loyalty with prudent capital management. The scale back was applied on a pro-rata basis relative to shareholders’ holdings as of the SPP Record Date, guaranteeing a minimum allocation of $1,000 in New Shares to participants whose pro-rata share would have been lower.

Acrow’s Diverse Construction Systems Portfolio and National Footprint

Acrow Limited is a leading supplier of integrated construction systems across multiple essential product categories in Australia’s construction and infrastructure sectors. Its offerings include formwork, industrial access, commercial scaffolding, falsework, shoring, screen solutions, and Jacking Systems (Jumpform technology). This broad product range enables Acrow to serve diverse construction and industrial projects, from specialised tasks to large infrastructure developments, supported by strong internal engineering capabilities for customised solutions.

With over 80 years of history, Acrow has expanded from a local business to a national leader, operating in 15 locations with over 60,000 tonnes of equipment deployed across Australia. This extensive network and equipment inventory allow efficient project servicing while maintaining local expertise and adherence to industry standards. Acrow’s strategic focus remains on growing its presence in Australia’s civil infrastructure market by leveraging its national footprint and local knowledge.

Capital Raise to Support Debt Reduction and Balance Sheet Strengthening

The Board has allocated the additional $6 million raised above the original underwritten amount towards further debt repayment, underscoring a strategic priority to strengthen the balance sheet and reduce financial leverage. This approach prioritises financial stability and improved creditworthiness over operational expansion or acquisitions, reflecting disciplined capital management focused on long-term financial health and lower interest expenses.

Accelerating debt reduction is expected to benefit shareholders through lower future interest costs, improved debt-to-equity ratios, and enhanced financial flexibility for future capital allocation. The Board views current debt levels as a constraint on strategic options and believes reducing leverage will unlock greater shareholder value over the medium to long term.

New Share Issuance and Trading Schedule

Approximately 18.8 million new fully paid ordinary shares will be issued under the SPP at $0.85 per share, consistent with the placement price announced on 18 June 2026. These shares are not subject to shareholder approval and were issued on 23 July 2026, with trading on the ASX commencing on 27 July 2026. This expedited timeline aligns with standard market practices for share purchase plans, providing investors with timely liquidity.

The second tranche of the broader placement remains subject to shareholder approval at an Extraordinary General Meeting scheduled for 29 July 2026. Upon approval, allotment and trading of Tranche Two Placement shares are expected around 4 August 2026. The company has provided indicative key dates but reserves the right to amend them in compliance with the Corporations Act 2001 (Cth) and ASX Listing Rules. Shareholders will be notified of final allocations, and refunds from scaled-back applications will be processed without interest via direct credit or EFT to nominated bank accounts.

Fair Scale Back Process Ensures Equitable Allocation

Due to the oversubscription exceeding the $16 million acceptance threshold, a scale back was implemented. The company applied a pro-rata scaling methodology based on shareholders’ holdings as of the 17 June 2026 SPP Record Date, excluding duplicated holdings to prevent undue advantage. To protect smaller shareholders, a minimum allocation of $1,000 in New Shares was guaranteed for those whose scaled allocation would have fallen below this threshold.

Refunds resulting from scale backs will be processed without interest through direct credit or EFT to the bank accounts recorded on the share register. Shareholders without valid bank details will have refunds held until valid payment instructions are received.

Extraordinary General Meeting to Approve Tranche Two Placement

While the SPP did not require shareholder approval, the Tranche Two Placement is contingent upon it. The Extraordinary General Meeting on 29 July 2026 will seek approval for issuing securities under this tranche. Resolution 5, previously concerning underwriting arrangements for the SPP, has been withdrawn due to the SPP’s successful oversubscription and no longer requiring underwriting. Subject to approval, allotment and trading of Tranche Two Placement shares are expected on or around 4 August 2026.

This bifurcated capital raise structure complies with regulatory requirements under the Corporations Act 2001 (Cth) and ASX Listing Rules, allowing eligible shareholders direct participation in the SPP while ensuring additional placement securities are subject to shareholder approval. The timing of the EGM shortly after SPP settlement maintains capital raise momentum while fulfilling regulatory obligations.

Industry Environment and Market Drivers Supporting Acrow’s Expansion

Operating within Australia’s construction and industrial services sectors, Acrow benefits from government investment in civil infrastructure, commercial development, and industrial projects. Its focus on expanding in the civil infrastructure market positions the company to capitalize on ongoing infrastructure funding in roads, rail, water, and telecommunications. Demand for formwork, scaffolding, and access systems correlates with construction activity cycles. Acrow’s diverse product range and national footprint provide resilience against regional or sector-specific downturns, though exposure to broader economic fluctuations remains.

The capital raise and debt repayment strategy indicate management’s confidence in capturing growth opportunities. Strengthening the balance sheet creates capacity for future investments in equipment, technology, or geographic expansion, supporting market share growth. Acrow’s 80-year history and national leadership demonstrate adaptability across construction cycles.

Reducing Financial Leverage to Enhance Strategic Flexibility

Allocating the additional $6 million towards debt repayment reflects a strategic emphasis on balance sheet strength. Lower debt reduces interest expenses, improves financial metrics such as debt-to-equity ratios, and eases covenant constraints on debt facilities. Reduced leverage enhances flexibility for future capital deployment, including organic growth, acquisitions, or managing industry downturns. Management views current debt as a constraint on strategic options.

This conservative financial approach signals confidence in Acrow’s business model and cash flow generation, prioritizing stability and reduced financial risk in the cyclical construction sector. The strengthened balance sheet positions Acrow to better withstand potential future market downturns with increased resilience and financial agility.

Transparent Shareholder Communication and Capital Raise Execution

Acrow’s management ensured clear shareholder communication throughout the capital raise, detailing SPP terms, scale back methodology, and settlement timelines. The SPP record date was 17 June 2026, with the offer opening on 29 June 2026 via dispatched booklets and closing on 16 July 2026. The 23 July 2026 announcement of results provided shareholders with final allocations and refund timing, demonstrating commitment to transparency and engagement.

Contact details for Steven Boland, Managing Director, and Andrew Crowther, Chief Financial Officer, at the registered office (2A Mavis Street, Revesby NSW 2212) were provided for shareholder inquiries, reflecting professional capital management and fostering investor confidence in the process.