(Alliance News) - TP ICAP PLC on Wednesday confirmed the underwriters for its rights issue have secured acceptances for all the remaining shares not originally taken up in the offer.
Underwriters HSBC, BofA Securities, JP Morgan and Peel Hunt procured subscribers for 3.9 million shares at 200 pence per share.
This follows the FTSE 250-listed interdealer broker netting acceptances for 98.3% of the 225.3 million shares offered in its 2-for-5 rights issue at 140.00p each.
Shares in TP ICAP were 2.8% higher in London on Wednesday midday at 209.20p each.
The rights issue will raise about GBP315 million.
The rights issue represents 40% of TP ICAP's existing share capital and 29% of its enlarged total.
The proceeds from the issue will go towards funding part of the USD575 million acquisition of Liquidnet Holdings Inc, first announced in October.
TP ICAP's shareholders have already approved the deal to acquire New York-based electronic trading network Liquidnet.
Liquidnet is a specialist in providing dark pool trading in equities, with a growing presence in fixed income. Dark pools allow institutional investors trade large blocks of shares without revealing their intentions until the deal has been completed.
For the year to the end of June, Liquidnet generated adjusted earnings before interest, tax, depreciation and amortisation of USD64 million, on revenue of USD339 million.
The Liquidnet deal comprises an upfront consideration of USD525 million on the completion of the deal, and a deferred consideration of USD50 million. TC ICAP will pay up to a further USD125 million depending on the performance of the Liquidnet Equities business over the three-year period from the start of 2021.
By Paul McGowan; paulmcgowan@alliancenews.com
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TP ICAP (TCAP)