2nd Oct 2018 11:36
LONDON (Alliance News) - Burford Capital Ltd said Tuesday it has raised about GBP192.6 million via placing 10.4 million shares with existing and institutional investors at a price of 1,850 pence each.
The placing shares represent about 5% of the issued share capital of the company prior to the placing.
Shares in Burford Capital were down 7.3% at 1,844.00 pence each in midday trading.
The finance and investment management firm focused on law said the placing was "well oversubscribed" and priced at a 2.9% discount to Burford's volume-weighted average share price since the release of its interim results in July.
The placing shares are expected to be admitted to AIM on October 4.
Following admission, Burford will have 218.6 million shares in issue. Burford currently holds no shares as treasury shares.
Numis Securities Ltd and Berenberg acted as joint global co-ordinators and joint bookrunners and Macquarie Capital Ltd as joint bookrunner in connection with the placing.
Chief Executive Christopher Bogart said: "We are delighted with the strong response from current and new shareholders to this modest expansion of our equity capital, which will serve as an even stronger foundation for the debt and private funds issues that we expect to follow shortly."
"We have not issued any equity into the public market since 2010 and we continually review our capital structure in light of our desire to support the growth of the business to capture the opportunities before us. It remains important to us that we both optimise our capital structure and retain a conservative balance sheet. We remain excited about the opportunities we see to deploy capital in legal finance to continue to develop our business."
Related Shares:
Burford Capital