International Public Partnerships (IPP), the infrastructure investment company, is tapping the market for funds to pay down its debt and stock up its war-chest.
The company is raising £180m through an open offer of shares to be issued at 116.25p each, with any unsold new shares being disposed of via a subscription offer and a placing.
The open offer is available to existing IPP shareholders on the basis of one new share for every six shares held at the close of business on May 23rd.
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Shareholders may subscribe for more than their entitlement, and if there are any newly issued shares still available, these will be distributed on a pro rata basis; otherwise, the rump of the issue will be placed with institutional investors.
The company said it retains the right to increase the size of the issue by up to 50%.
The directors believe that issue proceeds left over after the payment of debt are likely to be deployed within six to 12 months. The investment company's investment advisor has around £170m of potential investments in the pipeline.
As well as boosting the company's coffers, the share issue will result in the company's market capitalisation increasing, which should boost secondary market liquidity. Furthermore, the company's fixed running costs will be spread across a wider shareholder base.
JH
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