Stealth Group Raises $19.5M at 14.5% Discount to Boost Expansion
Stealth Group Holdings has secured $19.5 million through a share placement to strengthen its balance sheet, reduce debt, and fund the integration of Hardware and Building Traders (HBT) alongside its wholesale distribution expansion.
- Completed $19.5 million capital raising via share placement at $1.00 per share
- Funds to reduce debt and improve financial flexibility
- Supports rollout of wholesale distribution strategy linked to HBT integration
- Placement shares to commence trading on 2 December 2025
- Strong institutional and professional investor support
Capital Raising Overview
Stealth Group Holdings Ltd (ASX, SGI) has successfully completed a $19.5 million capital raising through a share placement priced at $1.00 per share, representing a 14.5% discount to the last closing price. The placement involved issuing 19.5 million new ordinary shares to institutional and sophisticated investors, reflecting strong market confidence in Stealth’s strategic direction.
Strategic Purpose Behind the Raise
The capital injection is primarily aimed at strengthening Stealth’s balance sheet by reducing existing debt, thereby enhancing financial flexibility and lowering leverage. This financial repositioning is critical as the company advances the integration of Hardware and Building Traders (HBT), a recent acquisition that expands Stealth’s footprint in the hardware and building supplies sector.
Additionally, the funds will support the rollout of a wholesale distribution strategy designed to leverage the combined strengths of Stealth and HBT. This initiative is expected to scale the company’s national multi-channel distribution platform, encompassing industrial, hardware, trade, and consumer markets.
Implications for Growth and Market Position
Stealth operates a diversified distribution model that includes wholesale, retail, and online channels, supported by a robust national infrastructure. The integration of HBT is a significant step in expanding this model, enabling the company to offer a broader product range and enhanced service capabilities.
CEO Michael Arnold highlighted the importance of the capital raising, stating that the strengthened balance sheet will provide the necessary financial flexibility to accelerate the HBT integration and the wholesale distribution rollout. This positions Stealth to pursue its FY28 strategic targets with greater confidence and deliver sustainable long-term value to shareholders.
Next Steps and Market Outlook
The settlement of the placement is scheduled for 1 December 2025, with the new shares expected to commence trading on the ASX on 2 December. Investors will be watching closely for updates on the integration progress and the impact of the wholesale distribution strategy on Stealth’s financial performance in the coming quarters.
Bottom Line?
Stealth’s $19.5 million raise sets the stage for accelerated growth, but integration execution will be key to unlocking shareholder value.
Questions in the middle?
- What specific debt levels will be reduced following the capital raising?
- How quickly will the wholesale distribution strategy rollout impact revenue?
- What are the key milestones for the HBT integration over the next 12 months?
