Higgs & Hill rights meet poor response: Company 'disappointed but not surprised'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HIGGS & HILL is 'disappointed but not surprised' by the poor take-up of its pounds 22m rights issue, writes Tom Stevenson.
Shareholders applied for only 31.2 per cent of the shares following a collapse in the construction company's share price since the launch.
Alfred McAlpine announced a 75.7 per cent take-up of its pounds 25m rights issue at 205p. Its shares closed at 207p.
When Higgs' one-for-two cash call was announced last month, the shares stood at 132p. But by the final date for applications at the end of last week, they had fallen to 104p, lower than the 105p subscription price.
The issue was fully underwritten by Schroders, the merchant bank. Following its failure to place the rump, the shares closed yesterday 2p lower at 102p.
John Theakston, chief executive, said the acquisition of 930 plots of housing land from English China Clay, to be funded by the rights issue, would go ahead.
The recent fall in the stock market has left a number of rights issues vulnerable. Several companies' shares were yesterday within a few pence of their rights issue prices.
NSM, the coal miner, fell below its 100p rights price before recovering to 104p. Britton, the packaging group, and Dixons, the motor dealer, held a few pence above the prices of their cash calls, while the pub operator Paramount's shares closed at the issue price of 9p.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments