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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

The major electrical distribution company has raised £1.14 billion through a discounted institutional share placing to fund an acquisition.

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.

Key Dates

11 June 2025
Admission Document publication
1 July 2025
General Meeting to approve transaction
3 July 2025
Admission of new shares and trading commences
Q3 2025
Acquisition of ECI expected to complete
PLACING