Placing and Admission of Companies to the Official List

Strategic Insights -

Major financial services institutions and specialized companies in the UK have conducted significant placings and admissions to the Official List, attracting substantial investments and funding. Dana Petroleum, an oil and gas exploration and development company, raised £7.9 million by issuing 49.7 million shares at 16p each, with an underwriter and broker role taken by Investec Henderson Crosthwaite. Invesco, a leveraged high yield investment trust, was admitted to the Official List through a placing worth £30.7 million, with 50 million shares issued at an unspecified price.

Honeysuckle Group, a ladies' fashionwear company, underwent a placing and open offer, raising £6.6 million after its shares had been suspended for two years. Existing shareholders were invited to purchase additional shares, and Theodore Goddard acted as the law firm for the transaction. Brewin Dolphin Holdings, a financial services institution, conducted a placing worth £11.4 million, issuing 1.56 million shares to fund the acquisition of a private client stockbroking business from Williams de Broe.

Key Takeaways:

  • The placing and admission process is essential for companies seeking to raise capital and access the Official List: This indicates that companies may opt for placings and admissions to obtain the funds needed for acquisitions and strategic growth.
  • Dana Petroleum's placing was primarily driven by existing shareholders, who were offered the option to purchase one new share for every 17 shares already held: This suggests that Dana Petroleum's existing shareholder base played a significant role in its placings.
  • Honeysuckle Group's placing and open offer aimed at reorganizing its activities and becoming an acquisitive shell: This shows that the company's management is focused on transformation and expanding its business scope.
  • The admission to the Official List via a placing involved notable advisors and firms,including Credit Suisse First Boston de Zoete & Bevan for Invesco and Arm Corporate Finance for Text 100: The involvement of top-tier financial institutions and corporate finance advisors highlights the importance of professional guidance for successful placings and admissions.
  • Brewin Dolphin Holdings used a placing to fund its acquisition of a private client stockbroking business from Williams de Broe: This example illustrates the application of placings for strategic acquisitions and business expansion.

Statistics:

  • Dana Petroleum raised £7.9 million, issued 49.7 million shares, with a price of 16p per share.
  • Invesco's admission to the Official List was via a placing worth £30.7 million, with 50 million shares issued at an unspecified price.
  • Honeysuckle Group conducted a placing and open offer, raising £6.6 million, with 116 million shares issued at 2p each.
  • Brewin Dolphin Holdings raised £11.4 million, issuing 1.56 million shares to fund its acquisition of a private client stockbroking business from Williams de Broe.
  • The market capitalization of Text 100 after its placing was £38.1 million, with 3.815 million shares issued at 170p each.

Sources:

  • Brewin Dolphin Holdings financial services institution - Sector: Speciality & Other Finance Market: Official List Type: Placing Terms Amount (£m): 11.40 No of shares (m): 1,560,000 Advisers Broker: HSBC PR Adviser: Bell Pottinger Financial Details
  • Dana Petroleum Oil and gas exploration and development company - Sector: Oil & Gas Market: Official List Type: Placing/open offer Amount (£m): 7.90 Price (p): 16.00 No of shares (m): 49,655,846 Underwriter: Investec Henderson Crosthwaite Broker: Investec Henderson Crosthwaite PR Adviser: Millham Communications Existing shareholders are invited to purchase one New share in the company for every 17 shares they already hold.
  • Honeysuckle Group Ladies' fashionwear company - Sector: Household Goods & Textiles Market: AIM Type: Placing/open offer Price (p): 2.00 No of shares (m): 116,000,000 Law Firm: Theodore Goddard Shares in the company had been suspended at 14p in April 1998, when Honeysuckle began to look towards reorganising its activities to becoming an acquisitive shell. Following this placing and open offer, the company will, coupled with a subscription and debt reorganisation, have some £6.6m to pursue activities
  • Invesco Leveraged High Yield Investment trust - Sector: Investment Companies Market: Official List Type: Admission via placing Amount (£m): 30.70 No of shares (m): 50,000,000 Sponsor: Credit Suisse First Boston de Zoete & Bevan Financial adviser: Invesco Asset Management Govett High Income Trust holds a notifiable interest of 2,750,000 shares in the share capital of Invesco, which represents 8.96% of the 30,700,000 issues share capital in issue.