Yu Group Raises GBP12 Million In 1.2 Million Share Placing (ALLISS)

LONDON (Alliance News) - Gas and electricity supplier Yu Group PLC said Wednesday it raised GBP12.0 million through the placing of 1.2 million shares.

Yu placed the shares - through an accelerated bookbuild process - at a price of 1,000 pence each, an 11% discount to the closing price on Tuesday. Shares in Yu were 8.9% lower on the day early Wednesday at 1,025.00p.

The placed shares represented 8.5% of Yu's share capital prior to the placing. After admission to trading - expected next Wednesday - the placed shares will be equivalent to 7.9% of its total 15.3 million shares outstanding.

Shore Capital Stockbrokers Ltd acted as sole bookrunner for the placing.

Late Tuesday, Yu had said the placing proceeds will be used to support the collateral required for the company's letters of credit that supports the its energy hedging policy. It will also be used to invest in the company's infrastructure and for general working capital purposes.