Investec plc to raise £145m in placing

Investec plc announced on Thursday morning its intention to place up to 30.87 million new ordinary shares in the company, representing 4.99% of its current issued share capital and 3.4% of Investec plc and Investec Ltd’s current issued share capital.

The FTSE 250 firm said the placing will raise up to £145m of gross proceeds based on Wednesday’s closing price of £4.71, to fund a tender offer for certain preference shares of the company.

Its board confirmed the placing is being conducted through an accelerated bookbuilding process, which was launched on Thursday morning immediately following the announcement.

J.P. Morgan Cazenove is acting as sole bookrunner, it added.

“The net proceeds from the placing will be used to fund a tender offer of certain Sterling Preference Shares and Rand Preference Shares,” the board said in the announcement.

“The purchase price for the Sterling Preference Shares is expected to be £5.70 … [and] the purchase price for the Rand Preference Shares is expected to be ZAR 100.00.”

Investec said application will be made for the placing shares to be admitted to the premium segment of the Official List at the Financial Conduct Authority, to trading on the main market for listed securities of the London Stock Exchange, and to trading on the JSE in Johannesburg.