International PPL raises £330m in initial issue

International Public Partnerships announced on Tuesday that the company has successfully completed its placing, open offer and offer for subscription.

The FTSE 250 company said that, due to “significant” oversubscription from new and existing investors, and after conducting a significant scaling-back exercise for non-preemptive allocations, the board elected to issue the maximum new shares available under the initial issue, raising gross proceeds of £330m.

It said the level of additional demand exceeded the original targeted capital raising of £250m by thee times.

The proceeds of the issue would be used in repayment of the company's cash drawn portion of its existing debt facility - of which approximately £342m was currently utilised, with £255.5m cash drawn and £86.5m committed in respect of letters of credit - and then, to the extent not required for repayment, to acquire further investments which included investment commitments already made by the company.

International PPL said the initial issue was “very significantly supported” by existing shareholders with a 93% take up of the open offer and excess application facility.

The high level of support from existing investors reportedly meant the company was unable to meet in full the demand from both existing and new investors for additional shares.

“The significant oversubscription of INPP's latest capital raising demonstrates the continued demand for the company's investment case, in providing shareholders with predictable, long-term and substantially inflation-linked returns from investment in long-term assets,” commented chairman Rupert Dorey.

“The company continues to offer its shareholders a highly visible and balanced pipeline of new opportunities, the outlook for which remains strong.”