Master Drilling debuts on the JSE

The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas

The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas

Published Dec 20, 2012

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Johannesburg - Master Drilling Group (MDI) - a leading global specialised drilling services company‚ has made its debut on the JSE.

The company listed its ordinary shares in the “Industrial Machinery” sector of the Main Board of the Johannesburg Stock Exchange on Thursday morning under the share code MDI.

The listing follows a successful private placement of 44.9 million new ordinary primary shares‚ 5.6 million secondary shares and 5.5 million over-allotment shares at R7.85 per share‚ which has raised R439.6 million before expenses.

The company intends using these proceeds primarily to fund its ambitious global growth strategy‚ it said.

Key will be the purchase of new drill rigs and associated equipment‚ so that Master Drilling can expand into new geographical markets.

At listing‚ Master Drilling has 148 265 491 ordinary shares in issue.

Founded in South Africa in 1986 by current MD Danie Pretorius and headquartered in Fochville‚ Master Drilling provides drilling services to major‚ mid-tier and junior mining companies.

It operates across a range of commodities and resources - throughout southern Africa‚ Latin America‚ Europe and the Middle East.

It also provides drilling services for civil engineering applications in a variety of emerging markets.

Directly and indirectly‚ the company currently has 154 drill rigs deployed across its global footprint.

“Since its founding 26 years ago‚ Master Drilling has grown rapidly to become one of the global leaders in raisebore drilling. We have loyal‚ bluechip clients across Africa and Latin America‚ several of whom have used our services continuously for more than 20 years‚” said Pretorius.

“Through both organic growth and strategic acquisitions‚ we intend to develop existing markets and to create new markets globally‚ while enhancing operational efficiencies and continuing our dedicated focus on quality and safety.”

“We are bullish about the medium- and long-term prospects for the resources sector at home‚ on the African continent and globally‚ and we are extremely confident that our expertise‚ experience and South African pedigree will continue to serve our new shareholder base well into the future‚” he concluded. - I-Net Bridge

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