(Alliance News) - Portmeirion Group PLC said Wednesday it has raised GBP10.0 million by placing 2.6 million shares at 380 pence each.
Shares in the pottery and candle maker were 3.9% higher in London on Wednesday at 400.00p each.
Stoke-on-Trent-based Portmeirion also noted it has issued 172,731 shares in a subscription, at the same price as the placing, raising GBP660,000.
The placing and subscription represent about 26% of the company issued share capital.
The company also hopes to raise a further GBP2.0 million through an open offer to existing Portmeirion shareholders. The company said 2 open offer shares will be offered for every 41 existing ordinary shares.
Portmeirion said the proceeds from the fundraise will be used to accelerate its growth strategy and margin improvement.
In particular, the Spode and Royal Worcester pottery brands owner said the proceeds will be used to accelerate all of its online channel sales growth and increase next day delivery warehouse capacity.
It will also be used to extend its Wax Lyrical scented candle line to hand and body products and build a more "significant presence" in Canada and "revitalise" the Canadian market.
"We are pleased to have received such strong support for the fundraising to drive our growth strategy and improve our margins. We are grateful for the support of our existing shareholders and new institutional investors, which reflects the strength of the group's brands, our business model and our prospects. We are also pleased to announce an open offer to qualifying shareholders," Portmeirion said.
The company added: "We have existing ample committed banking facilities and headroom. We are in a strong financial position and this successful equity fundraising provides further scope to grow the business and take advantage of emerging opportunities."
By Paul McGowan; paulmcgowan@alliancenews.com
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Portmeirion (PMP)