It wasn't a great session for ASX shares on Tuesday. By the time the closing bell rang, the All Ordinaries Index (ASX: XAO) had slipped 0.17% down to 8,297.1 points. But it was a different story for one ASX All Ords stock.
That would be infrastructure services company SRG Global Ltd (ASX: SRG). By the time trading wrapped up on Tuesday, SRG shares were asking 98.5 cents apiece, an impressive 3.14% gain.
What's more, SRG also managed to hit a new 52-week high yesterday. Yep, during intra-day trading, SRG shares climbed as high as 99.5 cents each, the highest level this All Ords stock has traded at in more than a decade.
So why did SRG Global shares have such a good Tuesday on a day when the broader market went backwards?
Image source: Getty Images
Why was this ASX All Ords stock at a new 52-week high today?
It's hard to know for sure. But it's possible that a new share purchase plan that was announced last week might have been the catalyst behind SRG's new 52-week high.
Last Tuesday, in the midst of a trading halt, SRG revealed that it had completed an institutional share placement. That was alongside its annual earnings report, which intially revealed said plan.
This share placement consisted of 72.3 million new ordinary shares being issued to existing and new institutional investors, at a price of 83 cents each. That presumably raised just over $60 million for the All Ords stock.
SRG told investors that these proceeds would go towards the acquisition of water security and energy company Diona Pty Ltd. In addition to this institutional placement, SRG also revealed that retail investors would also be invited to participate in an additional share purchase plan.
This plan offered similar terms to those above. Existing shareholders were eligible to purchase up to $30,000 worth of new shares. That was at that same price of 83 cents each. The company announced its intentions to raise an additional $6 million from this share purchase plan.
Yesterday, the All Ords stock released further details of this plan, including the standard booklet. This booklet did not contain much in the way of new information. As such, it seems likely that the new 52-week high in the SRG share price is a continuation of the goodwill that has flooded this company since the first share purchase plan was made public on 20 August last week.
Since that day, the All Ords stock has added a chunky 13.22% to its share price. As such, it seems investors are very excited about SRG's future plans.
