Download the Prospectus
Pre Money Equity Valuation
$-5,000,000
Min Raise
$5,000,000
Max Raise
$5,000,000
Estimated Close
2020-07-24
Issue Type
IPO
Lead Manager
JP Equity Partners
Type of Securities
Options, Shares
Date First Lodged
26/06/2020
Offer Costs $
$2,440,000
Key Executives
Mark Davis (MD), Matthew Freedman (ED), Garret Dixon (NEC), George Garnett (NED)
Company Address
London House Level 15, 216 St Georges Terrace Perth WA 6000
Exchange
ASX
1st Day VWAP
0.46
Chairman's Letter

Dear Investor
On behalf of the board of Dynamic Drill and Blast
Holdings Ltd (the Company), I am pleased to
present this Prospectus and to invite you to
become a shareholder in the Company.
The Company owns 100% of the issued capital of
Dynamic Drill & Blast Pty Ltd (DDB), an Australian
drilling and blasting company founded in
October 2011 that provides quality services in the
civil and mining industries from full production
drilling to specialty blasting.
Since 2011, the Company (through DDB) has
focused on providing quality and tailored
services to the mining, civil, utility and
government industries, through an extensive
service offering which includes large production
blasts to vibration sensitive and close proximity
civil work. The Company prides itself on
delivering a high-quality service provision to
each client and providing efficient solutions to
complex situations. Through its high-quality and
diverse service offering, the Company has
developed an established and growing quality
client base which includes work for project
owners such as Rio Tinto, FMG and Galaxy
Resources.
In 2018, the Company commenced preparations
for a new phase of growth. Key focus areas
included strengthening the balance sheet,
improving operational efficiencies, attracting
strategic and long-term investors, and enhancing
business development activities to significantly
increase tendering opportunities.
The result of this effort has been a significant
transformation in size and scale. Revenue for
DDB grew from $12.97 million in FY18 to $19.07
million in FY19, with DDB recording a net profit
after tax of $1.53 million in FY19, in what was a
difficult operating environment.
Currently, the Company is operating at three
Western Australian based projects, one of which
is nearing completion. The Company has
developed a strong pipeline of tendering opportunities. Importantly, the majority of these
tendered opportunities are medium-to-long
term, with the potential to build on the
underlying revenue stream.
We are a Western Australian focused business
and the outlook for the resource and civil sectors
is very exciting.
In 2018-19, Western Australia had 116 high-value,
export-oriented mining projects and hundreds of
smaller quarries and mines. Western Australia
remains one of the top contributors to global
commodity supplies, including in 2019 being the
world’s largest supplier of iron ore and significant
suppliers of lithium, gold and nickel.
In the civil sector, the Australian Construction
Market Report, from November 2019 highlighted
that infrastructure construction activity is
expected to grow from $62 billion in 2018-19 to
$66 billion in 2019-20 and $68 billion in 2020-21.
While we note that this report was published
prior to the COVID-19 pandemic, which is likely to
have a negative impact on that forecast activity,
the effect of that impact is not yet known. We
believe that the Australian construction market is
an exciting area where our specialty expertise in
close proximity blasting can be leveraged.
To date, only one of DDB’s soon to be completed
projects experienced delays through controls
implemented to minimise exposure to COVID-19.
While COVID-19 remains a risk to DDB and the
industry in general that DDB continues to
monitor, it is not currently impacting the
Company’s material contracts or the number of
tendering opportunities available.
The vision, strategy, and growth ambitions of the
Company played a key role in attracting me to
accept the role as Non-Executive Chairman. I was
also excited by the opportunity of working with
an experienced and enthusiastic management
team, who have been fundamental in growing
the Company into the position it finds itself in
today.
The purpose of the Public Offer is to raise
$5,000,000 (before associated costs) by the issue
of 25,000,000 Shares at an issue price of $0.20
each. The Lead Manager of the Public Offer is JP
Equity Partners (see Section 1.8 for further
details).
The proceeds of the Public Offer will be utilised
to enable the Company to:
• purchase additional plant and
equipment;
• repay existing loans;
• fund working capital and corporate
expenses;
• meet the costs of the Public Offer, and
• meet the conditions to apply for Official
Quotation of the Shares on the ASX.
This Prospectus contains detailed information
about the Public Offer and the current and
proposed operations of the Company, as well as the risks pertaining to an investment in the
Company. Potential investors in the Company
should carefully consider those risks (detailed in
Section 4).
We encourage you to read this Prospectus in its
entirety to gain a full understanding of the
Company’s operations before making an
investment decision.
On behalf of my fellow directors and the
Dynamic Drill & Blast team, I look forward to
welcoming you as a Shareholder should you
decide to take up Shares pursuant to the Public
Offer.
Yours faithfully
Garret Dixon
Non-Executive Chairman
Dynamic Drill and Blast Holdings Ltd