Property developer Quintain Estates has launched a £191m rights issue to reduce the debt burden on its balance sheet, take forward its regeneration projects and enhance its fund-management business.
IC TIP:
Hold
at
186p
The fully-underwritten three-for-one issue is at 49p, a 72 per cent discount to its share price prior to the announcement. Released the same day, half-year results showed that Quintain's property investments have increased in value by 4 per cent, boosting net asset value (NAV)S to 356p. And pre-tax profits are back in the black at £9.5m, compared with a thumping £129m loss at its March year-end.
