Randall & Quilter (R&Q) is looking to raise a total of £49.3 million through a firm placing of new ordinary shares with certain institutional shareholders and directors, as well as an open offer of new ordinary shares to qualifying shareholders.
Here are the details:
Placing
- A total of 34,883,720 new ordinary shares have been placed by Numis Securities Limited and Shore Capital Stockbrokers Limited.
- The price is 129 pence per share, for total gross proceeds of approximately £45 million.
- The shares represent approximately 39.8% of R&Q’s issued ordinary share capital prior to the placing and open offer.
Open offer
- Up to 3,309,117 new ordinary shares are available.
- Issue price will be the same, for total gross proceeds of approximately £4.3 million.
- Price represents a discount of approximately 11.9% to the closing price of 146.5 pence on October 04, 2017.
The combined share issue is conditional upon the passing of certain resolutions. As for the open offer, the terms and conditions will be set out in a circular for shareholders.
“We are delighted to have gained support for this capital raise to fund the significant growth opportunities ahead for the Group in our core activities of legacy acquisition activity and the writing of programme business on behalf of reinsurers,” said R&Q chairman and chief executive Ken Randall.
He continued: “We thank our major existing shareholders for their continued support and are pleased to welcome a number of new shareholders on to our register. We have provided the open offer element to enable our smaller and non-institutional shareholders to participate on equal terms.”
With the capital raise, the non-life insurance and investment specialist expects enhanced access to quality business through balance sheet strength.
“The significant opportunities available to the Group in both of our core operations are now able to be fully harnessed, and we look forward to the future with added confidence,” added Randall.
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