Rosebank Raises £1.14 Billion in Institutional Placing
Why we think this is neutral
The RNS announcement indicates that Rosebank has successfully raised £1.14 billion through an institutional capital raise, which is a neutral development. While the raise provides the company with additional funding, the details suggest it was a discounted placing, which can be seen as a negative signal about market appetite for the company's shares.
Key Points
- Rosebank raises £1.14 billion through institutional placing
- Placing price of £3.00 per share, a 5% discount to previous close
- Funds to be used for acquisition of US-based ECI
- Existing shares to remain suspended until Admission Document published
Summary
Rosebank Industries plc has successfully raised gross proceeds of approximately £1.14 billion via the issue of 380 million New Ordinary Shares at an issue price of £3.00 per share. The funds will be used to finance the acquisition of ECI, a private US-based market leader in critical electrical distribution systems. The placing was conducted at a discount of around 5% to Rosebank's previous closing share price of 630p.