Plexus Holdings Announces £3 Million Fundraise to Expand Rental Wellhead Fleet
Why we think this is good
The equity raise is priced at a relatively small 3% discount to the previous closing price, indicating reasonable investor appetite. The purpose of the raise is to fund the expansion of the company's core rental wellhead business, which seems like a sensible use of proceeds to support growth. While there is some potential dilution for existing shareholders, the raise amount is relatively small compared to the company's market capitalization.
Key Points
- Plexus raising £3 million through placing, subscription, and retail offer
- Funds to be used to manufacture 8 additional rental wellhead sets
- Raise priced at 3% discount to previous closing price
- Purpose is to expand rental wellhead fleet to meet growing customer demand
Summary
Plexus Holdings plc, the AIM-listed wellhead services business, is raising approximately £3 million through a placing, subscription, and retail offer to fund the manufacture of additional rental wellhead equipment. The raise is priced at a 3% discount to the previous closing price, indicating reasonable investor appetite. The net proceeds will be used to double the company's rental fleet, enabling Plexus to meet growing demand for its wellhead equipment in markets such as exploration, decommissioning, and carbon capture and storage.