Wynnstay raises £10.6m for Calne redevelopment, acquisition pipeline

Agricultural supplier Wynnstay Group has conditionally raised £10.6m before expenses, it announced on Thursday, to redevelop its Calne feed facility and pursue potential acquisitions.

The AIM-traded firm said under the placing, 1.9 million new shares were conditionally placed at a price of 560p each.

In its announcement of the placing on Wednesday, Wynnstay said it had been experiencing a “strong” trading backdrop, supported by “buoyant” farmgate prices across most categories, boosting farmer sentiment and farm investment.

It said it would use the placing proceeds to redevelop its Calne feed facility, and for future potential acquisitions which could include some it was “currently actively pursuing”, as well as others in its acquisition pipeline.

The placing, conducted through an accelerated bookbuild, was to have a minimum issue price of 550p each to raise at least £10.5m, meaning the final result at a premium to both figures.

“We believe that this is an important fundraising for Wynnstay,” said chief executive officer Gareth Davies.

“It will support both the planned redevelopment of the Calne feed facility and assist with potential future acquisitions.

“While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and the fundraising proceeds will enable us to accelerate growth plans.”

At 1037 BST, shares in Wynnstay Group were down 3.67% at 597.25p.

Reporting by Josh White at Sharecast.com.