(Sharecast News) - Specialist asset management service provider MJ Hudson announced the launch of an £8m placing and a £1.5m retail offer after markets closed on Wednesday, to fund its "fast growing" ESG division and to pay deferred consideration on its recent acquisitions.
The AIM-traded firm said the conditional placing would raise a minimum of £8m before expenses, and was being undertaken through an accelerated bookbuilding process via a conditional placing of new shares at 30p each, to new and existing institutional investors.
It said it was seeking to raise up to an additional £1.5m via the retail offer to provide both existing and new retail investors with an opportunity to participate.
The company said it reserved the right to scale back any order at its discretion, noting that preference was likely to be given to existing shareholders.
MJ Hudson's board said the net proceeds of the fundraising would be used to invest in and support the development of its "fast growing" environment, social and governance (ESG) division, and to pay deferred consideration to its "high-performing" acquisitions, including the outperforming Irish acquisition which required higher levels of regulatory capital to be held in cash in its accounts.
Cenkos Securities was acting as bookrunner for the placing.
"MJ Hudson has experienced a period of significant financial and operational progress, and we are delighted with the positive response we have now received, from both new and existing investors, for our plans to accelerate growth in our ESG business and to support the wider group," said chairman Geoff Miller.
"To have conditionally secured this funding against the backdrop of the current market for equities is a comment on the significant success achieved to date, and the scope of the opportunity we see ahead of us in the alternative investment markets."
Miller said underpinning that was the firm's reputation as a "market leading provider" of full-service solutions, which he claimed was growing with fund managers and institutions across the major asset management and funds hubs of the US and Europe.
"This has all been facilitated by the investment and acquisitions we have made, and the successful delivery of our initial public offering strategy.
"We look forward to updating all investors on our progress in the full year results in the coming months."
Shares in MJ Hudson Group closed flat on Wednesday at 31.25p, before the fundraising was announced.
Reporting by Josh White at Sharecast.com.
