Austal has announced a discounted rights issue to carry out an $85 million recapitalisation.
The shipbuilder aims to deliver on its $2.3 billion order book the West reported.
Existing shareholders will be offered nine new shares for every ten existing shares they hold.
Priced at 50 cents, the new shares are discounted by more than 50 per cent, in comparison to the last traded price of $1.02.
The discounted institutional component is predicted to raise $61 million while the retail component will raise a maximum of $25 million.
The company said the funds would be used to "reduce indebtedness and strengthen Austal's balance sheet".
"Given the outlook for the business at present the board felt it was prudent to recapitalise the balance sheet to ensure the company was best positioned to deliver on its order book and outlook," Austal chief executive Andrew Bellamy said.
These capital raising initiatives and renegotiated three year bank facility are expected to reduce Austal’s net debt to $130 million, lowering its gearing ratio to 26.7 per cent and increase the company’s financial flexibility.
Bellamy said refinancing allows the company to grow sustainably and take advantage of strategic initiatives.
"As a result, the board elected to raise equity and reduce the gearing levels, and at the same time renegotiate the debt facilities, to ensure appropriate maturity terms and interest rates are in place.
"Austal now believes it is appropriately capitalised to deliver on the company's strategy," Bellamy said.
Austal announced its full-year profit guidance is up $11 million from the previous financial year, sitting between $23 – $26 million.
"Austal continues to enjoy a strong positive outlook underpinned by a record order book of $2.3 billion which is expected to secure revenues through to 2016," Austal said.
"The growth is predominately underpinned by profitability improvement initiatives across the business and the benefits of the recently established Philippines shipyard operations," the company said.
The announcement comes after Manufactuers’ Monthly reported in October that Austal would increase its operations in Darwin.
The Perth based Ship builder’s CFO Richard Simons also left the company in October this year, Simons had been in the role two-and-a-half years, and his role had been diminished in the company’s restructure, coming after the company posted a first-half operating loss of $6.3 million earlier this year.