Technical products and services specialist Diploma announced the successful pricing of a non-pre-emptive placing of new shares on Friday, raising more than £235m to help fund its acquisition pipeline.
The FTSE 250 company said it placed 9,297,005 new shares with institutional investors at a price of 2,525p each.
That, it said, raised gross proceeds of around £235m.
At the same time, each of the directors of the company subscribed for a total of 3,960 new shares at the placing price, raising £0.1m in proceeds.
Furthermore, retail investors subscribed to a separate offer made by the company via the PrimaryBid platform for a total of 50,000 new shares at the placing price.
The retail oOffer raised gross proceeds of about £1m.
“The proceeds of the placing, subscription and retail offer will be used to refinance the consideration paid for the acquisition of Tennessee Industrial Electronics – a market-leading value-add distributor of aftermarket parts and repair services into the fast-growing US industrial automation end market – as well as provide the group with greater flexibility to execute on its strong merger and acquisition pipeline to accelerate future organic growth.”
At 1059 GMT, shares in Diploma were up 4.32% at 2,746p.
Reporting by Josh White for Sharecast.com.
