Redrow only shifts quarter of new shares

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.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

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.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.