30th Apr 2020 11:15
(Alliance News) - JD Wetherspoon PLC on Thursday confirmed it raised GBP141 million through the sale of 15.7 million new shares at 900 pence each announced after the market close on Wednesday.
The placing price represents a discount of 6.0% to the Wednesday closing price of 957.5p. Shares were trading 0.9% higher at 966.50p each on Thursday morning in London, giving the FTSE 250 pub operator a market capitalisation of GBP1.02 billion.
The placing was conducted through an accelerated bookbuild with Investec Bank PLC as sole bookrunner.
Wetherspoon said Founder & Chair Tim Martin, Chief Executive John Hutson, Finance Director Ben Whitley, and other members of the management team subscribed for a total of 33,330 shares, with Martin taking 20,000 of these. Substantial shareholder Columbia Threadneedle Investments bought 3.3 million shares for GBP29.6 million.
The new cash will be used for additional liquidity amid the period of disruption caused by Covid-19 with the assumption that the company's pubs will remain closed until late June.
The new shares represented 15% of the existing total. Following admission, JD Wetherspoon's expanded total will be 120.4 million shares.
By Ife Taiwo; [email protected]
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