Avingtrans raises £21M in oversubscribed placing to expand Hayward Tyler
What's the deal? UK-listed engineering group AvingtransDealroom has a profile for this one. Try Dealroom → has raised £21 million in gross proceeds through a share placing, selling 3,309,000 new ordinary shares at 630 pence each. Non-executive chairman Roger McDowell subscribed roughly £800,000 of the total.
The terms: The issue price matched the 630 pence closing mid-market price on July 9, the day before the placing launched. On admission, the new shares will represent about 9.0% of the company's enlarged issued ordinary share capital.
Why now? Avingtrans plans to use the funds to accelerate expansion, particularly at its Hayward Tyler business, to meet customer demand and boost manufacturing capacity.
What's the endgame? The AIM-listed company (AIM: AVG) tapped both existing and a large number of new institutional investors. Singer Capital Markets acted as sole bookrunner and nominated adviser.
The raise landed well above target. Chief executive officer Steve McQuillan said the fundraise was "greater than three times oversubscribed."
The signal: A significantly oversubscribed placing priced at the prevailing market level — with the chairman putting in his own capital — points to firm institutional appetite for Avingtrans as it scales manufacturing to chase demand.
Read more: Investegate
Image credit: Kitmondo.com
