House builder Redrow said that shareholders only took up a quarter of the 80 million pounds-worth of new shares it offered them in April.
The company's owners took up just over 12m shares, leaving the remaining 34m to go to the underwriter Bridgemere Securities, a company ultimately controlled by Steve Morgan, the Executive Chairman of Redrow.
This result means that Morgan now owns 40.4% of Redrow's shares.
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The company raised £19.4m in total through the placing of shares with Bridgemere and £60.2m through a 3 for 20 open offer, which was fully underwritten for no fee by Bridgemere.
"There are an increasing number of land opportunities both in London and in the regions and as such we are looking to raise further capital to enable us to take advantage of these opportunities as they arise," Morgan said when the offer was announced.
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