XP Power Completes Retail Offer, Raises £1 Million
Why we think this is neutral
The RNS announcement provides details on the successful completion of a Retail Offer by XP Power, raising £1 million in gross proceeds. While this capital raising activity is positive, the announcement lacks information on the revenue opportunities, margin levels, and earnings impact, which limits the ability to assess the overall significance of the news. The significant level of shareholder dilution of 17.7% is also a concern. Overall, the announcement is informative but does not provide enough context to determine a more positive or negative sentiment.
Key Points
- XP Power has successfully completed a Retail Offer, raising £1 million in gross proceeds
- The Retail Offer Shares were placed at a price of 975 pence per share, a 5.2% discount to the previous closing price
- In aggregate, the Placing and Retail Offer raised gross proceeds of £41 million, representing 17.7% of the existing issued share capital
- The net proceeds will be used to strengthen the balance sheet and complete the build and fit out of the Group's Malaysia facility
Summary
XP Power has announced the successful completion of a Retail Offer, raising £1 million in gross proceeds. The Retail Offer Shares were placed at a price of 975 pence per share, representing a 5.2% discount to the previous closing price. In aggregate, the Placing and Retail Offer raised gross proceeds of £41 million, with the new shares representing 17.7% of the existing issued share capital. The net proceeds will be used to strengthen the balance sheet and complete the build and fit out of the Group's Malaysia facility.