28th Jul 2024 11:06
(Alliance News) - SIG PLC is mulling going cap in hand to investors in a bid to raise up to GBP150 million, Sky News reported on Saturday.
The building materials firm is considering a fundraise between GBP100 million and GBP150 million.
Shares in the company closed up 1.8% at 26.48 pence each in London on Friday, giving it a market capitalisation of around GBP312.8 million. The stock is down some 20% year-to-date.
Sky News said the company did not want to comment on "market speculation".
https://news.sky.com/story/building-materials-group-sig-weighs-cash-call-after-profit-warning-13185700
The firm had secured some GBP165 million from an equity raise during the pandemic, including backing from private equity firm Clayton, Dubilier & Rice LLC. CD&R has roughly a 29% stake in SIG.
The Sheffield-based supplier of insulation, roofing, commercial interiors and construction products said in June that market conditions have remained challenging in the calendar year to date.
SIG said softness in the building and construction sector had been most notable in French and German markets, and in the end markets of its UK Interiors business.
As a result, SIG said it expects 2024 full year underlying operating profit to be in the range GBP20 million to GBP30 million, below an analyst range.
SIG at the time had put the analyst range at between GBP36.7 million to GBP43.0 million
By Eric Cunha, Alliance News news editor
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