Costain completes £100m fundraising
By Sean Farrell
Date: Thursday 28 May 2020
(Sharecast News) - Costain has completed a £100m fundraising to strengthen its balance sheet and take up growth opportunities.
The infrastructure group said on 7 May it would raise 80% of the money through a firm placing of shares and £20m through a placing and open offer, both at 60p a share. UAE construction group ASGC agreed to invest £25m for a 15% stake in the company.
The offers closed on Wednesday and was successful, the company said. Shareholders took up 83.4% of the open offer shares. Shareholders applied for 140% of shares available under an excess application facility so that shareholders applying for the open offer will get their full entitlement.
The company's shares rose 18.3% to 81.5p at 11:57 BST.
Alex Vaughan, Costain's chief executive, said: "We are pleased to have completed our £10m equity raise providing us with a stronger balance sheet to take advantage of opportunities in our target markets. Costain has significant potential to capitalise on the UK's many infrastructure investment programmes aimed at safeguarding our society, unlocking economic growth and decarbonising our environment."
When it announced its plans for the offer Costain said the money would "demonstrate its increased financial capacity to clients" and "take advantage of business growth opportunities through the investment required in bid costs and innovation and technology". Shareholders voted for the capital raising at a meeting on Wednesday.
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