- Johns Lyng Group (JLG) has successfully raised $221 million via an institutional placement and entitlement offer to help fund its acquisition of Reconstruction Experts
- The building services company also opened a retail entitlement offer for shareholders today, as it looks to raise an extra $42.5 million
- JLG reports the recently completed institutional entitlement offer was well-supported, with shares issued at $6.80, while a number of shortfall shares sold at a premium of $7
- The institutional placement also saw shares subscribed for at the premium price of $7, with several JLG executives taking part in the capital raise
- Company shares are trading 1.65 per cent in the green at $8.64
Johns Lyng Group (JLG) has successfully raised $221 million to help fund its acquisition of Reconstruction Experts.
The building services company raised the cash via an institutional placement and institutional entitlement offer to investors.
JLG has also opened a retail entitlement offer for shareholders today, as it looks to raise an extra $42.5 million in capital.
Under this latest offer, shareholders can subscribe for 1 new share for every 35.91 already held at an issue price of $6.80 per share.
In comparison, shortfall shares under the institutional entitlement offer and $187.5 million institutional placement sold at a premium of $7 each.
While under the $34 million institutional entitlement offer, investors were able to snag shares at $6.80 each.
Several JLG Directors subscribed for shares under the offer, with a total of $18 million in subscriptions received.
Commenting on the capital raise, CEO Scott Didier said he was excited to take control of Reconstruction Experts.
“We believe the Reconstruction Experts acquisition is the perfect fit for us to unlock the US market,” he said.
“The existing management are extremely motivated and excited to join our partnership model and the business represents exciting growth opportunities.”
Shares issued under the institutional placement and entitlement offer are expected to settle on December 20, while the retail entitlement offer closes on December 20.
During mid-afternoon trade on Wednesday, Johns Lyng Group were trading 1.65 per cent in the green at $8.64 each.