20th May 2019 16:39
LONDON (Alliance News) - AB Dynamics PLC said Monday it has raised GBP45.1 million through the placing of 2.1 million shares with institutional investors at 2,200 pence per share.
The company, which designs manufactures and supplies testing systems and measurement products for the automotive market, said the placing represents about 10% of its existing issued share capital.
Shares in AB Dynamics closed down 3.2% Monday at 2,436.20p.
Earlier, AB Dynamics said it will use the funds raise to finance potential acquisition opportunities, adding important production capacity and for ongoing working capital requirements.
"This is an important milestone in the company's corporate development. The proceeds of the placing will enable us to make strategic investments in the company, leveraging our existing strengths and capabilities. As the active safety market grows and develops, AB Dynamics is well positioned to capitalise on the significant opportunities available," said Chief Executive James Routh.
Routh added: "We are delighted with the result and strong support shown from both existing shareholders and new institutional investors. I believe today's announcement reflects the confidence they share in the growth prospects of the business and the outstanding team. While our products and services are already highly regarded by a range of blue chip clients, this fundraising is a transformative step forward to achieving our ambition to become a world-leading specialist in automotive test systems."
AB Dynamics will also target the raise of GBP5 million via an open offer, at the same price as the placing, for existing shareholders. The open offer will take place on the basis of 1 share for every 86.5 shares held.
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