Two thirds of shareholders take up Renold rights

JUST under two thirds of the rights to new shares were taken up in Renold’s £27m fundraising.

The industrial chainmaker said it had received acceptances from shareholders for 56.5 million shares of the 87.5 million available through the placing and open offer.

The balance of 30.9 million shares has been allocated to investors in a conditional placing. A further 55 million shares were made available through a firm placing taking the total to 142.5 million. They were all priced at 20p each.

The Manchester-based company announced the fundraising last month as it unveiled pre-tax losses of £8.8m in the six months to September 30, compared to a profit of £4.1m last time. Revenue fell from £95.2m to £75.5m.

It plans to use the proceeds to slash its £39.6m debt pile. Shareholders will vote on the fundraising at a general meeting today. If it is approved the new shares will be admitted to the stock exchange on Thursday.