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.
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
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
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.
-
RICS: Seller confidence hits new high but buyers are yet to return to the property marketThe latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) shows there are signs that confidence is slowly returning to the housing market
-
'Lockdown wills’ at increased risk of legal challengePressures caused by the pandemic led some people to rush their wills. Now, lawyers are saying problems are surfacing that could make them invalid
