Speedy rights issue just shy of target
TOOL hire company Speedy Hire today announced that 92% of the new shares it issued in a bid to reduce its debt have been take up by shareholders.
The Newton-le-Willows company unveiled its £100m rights issue in May, in a bid to reduce its debt pile.
It offered shares at 23p each – 86% lower than the price its shares closed at the day before – to raise £105m (£100m net of expenses).
The company has managed to raise around £97.4m before expenses, with 92.37% of the 458.6 million shares it issued being taken up.
The company added that stockbrokers Oriel Securities and KBC Peel Hunt will now find subscribers for the balance of 35 million new ordinary shares not taken up under the rights issue.
Speedy said the fundraising would strengthen the group’s balance sheet, reduce net debt and provide financial and operational flexibility should its core markets continue to weaken.
The company, which has been severely affected by the collapse of the construction industry, announced a £70m pre-tax loss in May. Net debt stood at £248.4m.
