Three things you need to know in the financial markets this morning from investment writer, Tony Cross.
SEGRO
SEGRO LON:SGRO has announced that the capital raise it announced just yesterday, seeking to pull in a additional £650m has not only completed but has also been in such demand that the offer was increased by a further £30m. Offered at a 4.5% discount, this was far from a fire sale and the company notes that it also ran a retail offer over the Primary Bid platform. Awareness amongst boards of the need to ensure that smaller investors aren’t being ignored through these funding rounds continues to build and could prove to be an important metric in the future.
Whitbread
Another funding update, this time from Whitbread LON:WTB who launched a 1 for 2 rights issue around three weeks ago. The new shares were offered at a 37.4% discount to the theoretical ex-rights price and the 91.4% uptake saw almost £1billion raised from shareholders. The small minority who didn’t take up the offer will receive the surplus after the remaining shares are offloaded into the market today. The structure of the raise means that some lack of uptake was always inevitable, but given the speed with which others are raising cash, it perhaps does ask some questions over wider confidence in the leisure sector.
QUIZ
Gloomy news from the retail sector this morning with a note from omni-channel, fast fashion brand QUIZ LON:QUIZ, proposing a restructuring of its stand alone network of stores. It’s a slightly complex structure but a wholly owned subsidiary, Kast, operates its UK store network and this unit has appointed administrators. The idea is that parent QUIZ will then acquire Kast and certain assets. 822 of 915 jobs will be saved, but landlords will find themselves under pressure to accept offers of lower rents from the new entity.
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