(Alliance News) - HICL Infrastructure PLC on Friday said it plans to raise money via a retail offer and placing which will be used to restore its GBP400 million revolving credit facility.
The infrastructure investment company said that both the retail offer and placing shares will be issued at 169.0 pence each, a 3.1% discount to the closing price on Thursday.
HICL shares closed on Thursday at 173.40p each in London. Meanwhile, its stock was down 2.3% to 170.40p each on Friday morning.
The number of shares issued will be decided following the close of the placing.
HICL said that investors can participate in the retail offer by applying through the PrimaryBid mobile app. It added that there is a minimum subscription of GBP250 per investor in the retail offer.
The net proceeds of the fundraise "will restore the company's GBP400 million revolving credit facility capacity and provide additional resources to support pursuit of the company's near-term pipeline," HICL said.
At March 31, it noted its revolving credit facility had reduced to about GBP90 million.
The company also said that current inflation forecasts for financial year 2023 are ahead of the assumptions used by HICL in its March 2022 valuation. Based on current inflation forecasts, the March net asset value per share would have been 3.0p to 3.6p higher.
Admission of the retail and placing shares onto the London Stock Exchange is expected to take place on July 19. The retail offer will not be completed without the placing also being completed, HICL added.
By Sophie Rose; sophierose@alliancenews.com
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HICL Infrastructure (HICL)