Galliford Try confirms completion of rights issue

The construction group confirmed that acceptances were received for 91.5% of the one-for-three rights issue of up to 27.74m new ordinary shares, priced at 568p apiece. The shares closed at 885.5p at the end of last week.

Later, Galliford confirmed that its brokers had found subscribers for all of the remaining 2.36m shares, representing around 8.5% of the total in the rights issue, at a price of 860p apiece.

Even though the balance sheet appeared relatively sound, recent losses on historic construction contracts, exacerbated by Carillion's recent liquidation, the board chose to raise further funds with the reasoning that it did not want to hold back from making investment in what it sees attractive growth opportunities across its business.

Rights issues give existing shareholders the right to purchase new shares at a discount to the market price.

The new shares will be credited shareholder accounts on Monday and begin trading at 0800 BST the same day, with definitive share certificates dispatched by no later than 25 April.