The money will ber used to bid for, and take on, larger contracts as well as to support investment in innovation and technology, the company said.
It will also be used to fund likely increased working capital requirements arising from market moves towards target cost, cost reimbursable contracts.
The plan is to raise 拢25.0m through a firm placing and 拢50.1m through a placing and open offer.
For the year ended 31 December 2013, Costain鈥檚 revenue increased 2.7% to 拢960.0m (2012: 拢934.5m).
Operating profit rose 12% to 拢27.4m (2012: 拢24.5m), attributed to a focus on higher margin projects.
Pre-tax profits were virtually halved to 拢12.9m (2012: 拢24.7m) due to one-off costs of the failed bid for May Gurney (which cost 拢3.7m) and 拢9.8m written off on a Spanish land development.
The forward order book stood at 拢3.0bn at year-end.
Costain鈥檚 Infrastructure division saw revenues grow 13% to 拢560.6m (2012: 拢494.9m) and adjusted operating profit rose by more than 30% to 拢31.4m (2012: 拢23.5m).
The Natural Resources division that was established in November 2012, encompassing water, oil & gas, nuclear process and waste work, saw revenues shrink 9% to 拢397.6m (2012: 拢437.7m).
Adjusted operating profit, excluding one-off sales of interests in associates and joint ventures, was cut to 拢3.7m (2012: 拢9.0m).
Chairman David Allvey said: 鈥淐ostain has been transformed and is now one of the UK鈥檚 leading tier one engineering solutions providers. The Group is established in a developing market of a limited number of providers who can deliver the innovative integrated consulting, project delivery and operations and maintenance services increasingly demanded by major customers.
鈥淭he proposed 拢75m fully underwritten capital raise, announced today in conjunction with another strong performance in 2013, provides us with the opportunity to accelerate our growth in the medium and long-term in rapidly evolving markets in which it is expected that over 拢400 billion will be spent in the next 10 years.鈥�
Chief executive Andrew Wyllie said: " Today's proposed capital raising will enable us to accelerate the rate at which we address these opportunities, and will thereby enhance the Group's medium and long term growth prospects, by demonstrating the Group's financial capacity to support a greater number of longer, larger contracts, investing in innovation and technology, financing bid costs for projects, funding increased working capital requirements and, where opportunities arise, adding further expertise by acquisition."
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