30th Oct 2013 13:18
LONDON (Alliance News) - Gable Holdings Inc. said the equity placing and subscription it launched Wednesday morning was successful, raising gross proceeds of GBP10.7 million.
Gable is a European non-life insurance company underwriting a comprehensive range of specialist policies for the commercial sectors in the UK, Denmark, France, Germany, Italy, Norway and Spain.
It said it had issued 19.5 million new ordinary shares at a price of 55 pence per share, a discount of about 12% to Tuesday's closing price. Of the new shares, Gable earlier had said 17.7 million would be placed with new investors and 1.8 million subscribed by existing shareholders.
The new placing shares and subscription shares will represent approximately 14.7% of the enlarged issued ordinary share capital of the company.
Chief Executive William Dewsall subscribed for 90,345 of the subscription shares, taking his beneficial holding to 24.5 million shares, or 18.4% of the enlarged issued share capital.
"This is Gable's first funding round since floating on AIM in 2005, and we have been delighted with the response from our existing shareholders and our new institutional and private investors who we welcome to the company, and thank them for their support," Dewsall said in a statement. "With the additional solvency capital in place, Gable is in a strong position to benefit from a number of opportunities to grow the business."
In September, Dewsall told Alliance News the company was having "very interesting discussions" in the United Arab Emirates, though no firm plans are in place to move into the market yet.
The new shares are expected to commence trading on November 4.
Gable shares were Wednesday quoted at 61.30 pence, down 1.5%.
By Samuel Agini; [email protected]; @samuelagini
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