LONDON (ShareCast) - (Sharecast News) - FTSE 250 animal genetics company Genus said on Friday that it has raised £68m in a share placing.
A total of 3.1m new shares - around 5% of its issued share capital - were issued to new and existing investors at 2,200p each, which represents a 7.8% discount to the closing price of 2,386p on Thursday.

Genius said a day earlier when it announced the placing that funds would be used to reduce the company's net debt position and to provide balance sheet flexibility "to continue to capture growth opportunities" following a series of acquisitions and capex investments in recent years.

Peel Hunt and Liberum acted as joint bookrunners in respect of the placing.

"We continue to see many substantial growth opportunities for Genus," Liberum said in a note.

"At its recent capital markets day, management outlined its plans for increased investments in the next three years relating to the upgrading of its US ABS bovine facilities; expansion of PIC nucleus herds including facilities dedicated to the PRRSv-resistance programme; a new ERP system and deferred consideration for the Mollevang acquisition.

"Beyond this we also believe there may be additional PIC investment opportunities in China as Genus looks to capture growth if the industry accelerates its shift towards large, commercialised farms in the wake of ASF. Furthermore, the fund raise will enable Genus to react to any acquisition opportunities that may arise."

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