(Alliance News) - Gresham House PLC on Monday said it is to raise GBP8.0 million to help fund new acquisitions.
The specialist alternative asset manager is placing 1.6 million new shares at a price of 510 pence each. Shares finished 19% lower on Monday in London at 476.00p.
Gresham House is currently looking to grow assets under management to over GBP6 billion, with the figure at GBP2.8 billion at the end of 2019. It also wants to boost operating margins to over 40% and maintain a return on invested capital of 15% or higher.
These proceeds, the firm said, should allow it to target new contracts, expand its product offering, and carry out "complementary" acquisitions. There is a pipeline of new opportunities in the "advanced" stage, Gresham House added.
Chief Executive Tony Dalwood commented: "There has been strong and significant demand from existing and new shareholders in Gresham House on the roadshow following a strong set of results for 2019.
"The management team has created options to generate further value from use of its balance sheet, as it has done previously. This capital, together with existing resources, will be used to capture shareholder value from previously identified and new investment opportunities."
By George Collard; georgecollard@alliancenews.com
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