Jasco wants to raise R57.6 million to accelerate organic growth and improve its balance sheet.
The company will issue 72 million shares, at 80c each, a premium to the current share price of 75c. In a statement, Jasco, which has been going through a turnaround programme, says the offer has been proposed to push its organic growth strategies and "strengthen and improve the structure and efficiency of its balance sheet".
Jasco says the proceeds will be used to trim its overdraft amount, fund organic growth initiatives, and make its balance sheet more flexible, as it will have a diversity of funding sources and be able to borrow more capital. The offer has been underwritten for an amount of R45 million.
In September, when it published its year-end results, the group said it was keen to acquire small, bolt-on, entities to boost top line growth.
In the year to June, the company grew turnover 16.3%, to R1.15 billion, but wants to speed up top line growth to past the R1.5 billion-mark. No single customer accounts for more than 8% of its total revenue.
Jasco explains it is entering the final year of its three-year restructuring programme and has made significant progress so far. The last year will focus on "strong corrective action".
So far, Jasco has consolidated five business units, deregistered or sold 13 legal entities, created a single brand from several "disjointed" ones, and grown its order book from R800 million in 2011 to R1.2 billion in 2013.
This year, Jasco will focus on improving its funding position and trimming the group's interest burden. It will also exit the low-value manufacturing business, which includes selling its stake in M-Tec.
Jasco will also keep an eye on units that do not perform, and aims to improve the quality of its earnings. Improving earnings includes wrapping up its restructuring programme, consolidating procurement and improving its management of working capital, it says.
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