Banks place leftover Mothercare shares to take haul to £100m
RETAILER Mothercare raised a further slug of cash to boost its digital expansion yesterday after banks placed the leftover shares from its rights issue.
The babycare specialist launched a fundraising last month to help it add a stronger online presence to its bricks-and-mortar offering.
Banks underwriting the offering – Numis Securities, JP Morgan Cazenove and HSBC – initially placed most of the shares at 125p per share, to raise £95m.
But yesterday the bookrunners found buyers for a further allotment of shares, known as the rump, which were priced at 170p, taking Mothercare’s total haul to £100m.
Mothercare boss Mark Newton-Jones said: “The successful completion of our rights issue today creates a strong financial position that now allows us to modernise our business and fulfil our ambition to be the leading global retailer for parents and young children.”
Shares fell 3.77 per cent yesterday to close at 172.25p.
Mothercare is preparing to use the money to pay down a £40m loan and overhaul its website.