Big Yellow Group raising fresh £67m in placing
Big Yellow Group announced its intention to raise gross proceeds of about £67m by way of a placing on Wednesday, with both existing shareholders and new institutional investors.
Big Yellow Group
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15:44 25/04/24
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The FTSE 250 self-storage operator said it intended to use the proceeds to fund its current pipeline of development opportunities, as well as to continue its longer-term portfolio expansion strategy.
It said the combination of building out the current pipeline and the equity raise would be marginally earnings dilutive in the short term, but the board believed that was “more than offset” by the anticipated significant medium-to-long term accretion.
Members of the board themselves intended to invest up to £265,000 in aggregate in the placing.
The number of new shares issued would not exceed 4.99% of the company's existing issued share capital, Big Yellow confirmed.
It said the placing was being conducted through an accelerated book-build process, which was launched immediately following the company’s announcement.
J.P. Morgan Securities was appointed sole bookrunner in respect of the placing.
“This equity raise allows us to execute our next phase of growth through the acquisition of new development sites that will deliver medium-term earnings progression,” said Big Yellow’s executive chairman Nicholas Vetch.
“Our newly acquired site at Queensbury in London is the first of these and we continue to identify attractive locations for the Big Yellow brand.”