2nd Jul 2020 09:48
(Alliance News) - Forterra PLC on Thursday said it has completed a share placing, raising gross proceeds of GBP55 million.
The company said it is pleased by the strong support it has received from existing shareholders and new investors.
The Northampton-headquartered manufacturer of building products issued 28.2 million shares at a price of 195 pence each. The placing price represents a 5.6% discount to the closing mid-market share price of 206.5p on Wednesday.
The stock was trading 7.7% lower on the day Thursday at 190.60p a share, giving it a market capitalisation of GBP384.4 million.
Foterra said Deutsche Bank AG, London Branch, and Numis Securities Ltd acted as joint bookrunners.
Following the admission, Forterra will have 228.7 million shares overall, it said.
The net proceeds from the placing will enable Forterra to maintain a strong balance sheet that can support its continued investment programme, the company said.
Forterra also said it hopes the funds can allow it to "withstand a range of downside scenarios as a consequence of Covid-19".
In a bid to save cash during the pandemic, Forterra has already implemented a 20% board pay cut and initially furloughed 75% of its workforce. Many staff have come back. At the moment, just 35% are furloughed.
By Evelina Grecenko; [email protected]
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