(Alliance News) - STV Group PLC on Wednesday said it intends to raise GBP16.2 million through the placing equal to up to 18% of its current issued share capital.
Shares in the Glasgow-headquartered television broadcaster were trading 3.2% lower at 241.00 pence each on Wednesday afternoon in London, giving it a market capitalisation of GBP97.2 million.
STV Group said the placing will be conducted through an accelerated bookbuild and will include a broker option worth up to GBP800,000 to allow retail investors to participate.
Panmure Gordon UK Ltd and Peel Hunt LLP are acting as joint bookrunners in connection with the placing.
The cash will be used to strengthen STV's balance sheet and support delivery of the company's plans when conditions normalise.
STV said that while its outlook remains uncertain, it has seen "modest" signs of an improvement. Advertising revenue is expected to bounce back further from a 39% year-on-year decline in May and a 42% fall in April. In the second quarter of 2020, broadcast viewing is up 13% and online viewing for the year to date is up 70%.
"While the short-term outlook remains uncertain, our on-screen performance continues to be excellent, we are starting to see modest signs of improvement in the advertising market, and the board is confident in the long-term prospects of the group," said Chief Executive Simon Pitts.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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