Duke Royalty Ltd - Guernsey-based royalty finance provider - Plans to raise GBP15 million in accelerated bookbuild process in placing of 42.9 million shares at 35 pence each, as well as further GBP1.5 million through primary bid offer. Placing price is at discount of 9.7% to closing middle market price of 38.8p on Monday. Placing is conditional on shareholder approval at the extraordinary general meeting on May 26.
Net proceeds to be used to invest further capital into existing royalty partners, to help them deploy a 'buy and build' acquisition strategy, and explore new opportunities, Duke says.
"As we reported in our Q4 trading update, normalised cash revenue for the first quarter of financial 2023 is expected to be GBP5.0 million, a significant increase year-on-year, and the board remains confident that trading results for the full year ending March 31 will be in line with market guidance. This fundraise is intended to fuel further growth and diversification, therefore with this in mind, we are delighted to invite other investors to participate alongside institutions through the PrimaryBid Offer," says Chief Executive Officer Neil Johnson.
Current stock price: 38.00 pence
12-month change: up 4.1%
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Duke Capital (DUKE)