Costain slumps as ASGC dumps entire stake in placing

Costain slumped on Wednesday after Dubai-based Al Shafar General Contracting Company (ASGC) exited its investment in the construction company in a placing of just over 41.6 million shares to institutional investors.

The shares, which represent around 15% of the issued share capital, were placed at 91p each and ASCG raised approximately £37.9m in gross proceeds.

The placing was upsized by around 39% from an original 30m shares "on the back of strong deal momentum".

Costain is not party to the placing and will not receive any proceeds.

At 1220 BST, the shares were down 6.8% at 97.80p.

A Costain spokesperson said: "We note that the sale by ASGC was increased from their original proposal, reflecting strong demand from other institutions for our shares including existing holders increasing their positions.

"This recognises the continued strong performance of the business, high volume of forward work and on target margin growth."