MJ Gleeson (GLE) has raised around £16.4m after issuing new shares via a placing to existing major shareholders and new institutional investors. The low-cost housebuilder said it would use the proceeds to accelerate construction of homes once the lockdown lifts and the opening of new sites already owned or contracted.
The shares, which will represent 4.7 per cent of the group’s enlarged share capital, will be admitted on 14 April. Chief executive James Thomson and chief financial officer Stefan Allanson were among the board members to participate in the placing.
The placing comes on the same day the Financial Conduct Authority unveiled a series of measures to aid companies seeking to raise capital, including welcoming the Pre-Emption’s Group’s updated guidance for shareholders to support issuances by companies of up to 20 per cent of their issued share capital.
Gleeson has 22 new sites owned or in planning and, prior to the lock-down, management had planned to phase the openings of 17 sites during the remainder of H1 2020. However, in order to satisfy expected pent-up demand and maximise growth of sales and earnings, management is targeting a compression of these new site openings into a smaller window once restrictions are lifted.
