SGI Price sensitive 22 Apr 2025, 9:30 AM

Stealth completes Successful Capital Raising

Stealth Group Holdings Ltd

Stealth completes Successful Capital Raising

Key points

  • Raised $7.5 million from institutional and sophisticated investors
  • Funds to support growth initiatives including product expansion, marketplaces, and digital infrastructure
  • Strengthens shareholder register and positions Stealth for next phase of growth

Full summary

Stealth Group Holdings Ltd (ASX: SGI) has advised that the trading halt requested on April 16, 2025, has now been lifted following the successful completion of a capital raising to institutional and sophisticated investors. The amount raised was $7.5 million before capital raising costs. This is the Company's first capital raise since listing on the ASX in October 2018 and marks a significant milestone in strengthening the shareholder register and positioning Stealth for its next phase of growth. The capital raising has attracted support from high-quality institutional investors, marking the first time in three years that institutional investors have joined the Stealth register. The raise also included participation from select sophisticated investors, further broadening and strengthening the Company's shareholder base. Funds raised will be deployed to support growth-focused initiatives aligned to Stealth's FY28 strategic target of $300 million in sales, including expansion of exclusive and own-brand product ranges, growth of Marketplaces and the store-in-store roll-out, launch of Hire business including new In-Store Hire-rental openings, investment in network expansion, digital infrastructure, and customer channels, subscription & Loyalty programs enhancing customer retention and growing new revenue streams, and strengthening the balance sheet to enhance financial flexibility and support margin accretive opportunities. CEO Mike Arnold said: 'The strong support from institutional and sophisticated investors is a clear endorsement of our strategy and growth potential. This marks a new chapter for Stealth as we accelerate our ambitions and build a stronger, future-ready business.'

Guidance

Stealth Group is targeting $300 million in sales by FY28.

Outlook

Stealth is evolving into a scalable, higher-margin, multi-channel distribution platform servicing both B2B and B2C markets across industrial, safety, workplace, automotive, and consumer categories.

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