Mpac launches £1m retail offer alongside £29m placing

1st Oct 2024 14:03

(Sharecast News) - High-speed packaging and automation company Mpac launched a retail offer to raise up to £1m on Tuesday, as part of a larger placing to raise almost £30m.

The AIM-traded firm said the retail offer would be conducted via the BookBuild platform, with up to 250,000 shares available at a price of 400p each, representing a 3.6% discount on the closing mid-market price of 415p on 30 September.

In addition to the retail offer, Mpac said it was conducting a larger placing of new shares aimed at raising £29m.

However, the retail offer was separate from the placing and would represent about 1.2% of Mpac's existing issued share capital.

The board said the funds raised from the retail offer would be used for general working capital purposes, including reducing the company's debt levels.

It said the offer was conditional on the completion of the larger placing and the admission of the new shares to trading on AIM, with dealings expected to commence on 21 October.

The retail offer opened on Tuesday, and would close on 7 October, with investors in the UK able to participate through their brokers or wealth managers.

Mpac said it had made the offer available to its retail shareholders as a way to acknowledge long-standing support.

The minimum subscription was £100, with no maximum limit for applications.

Mpac's board said it would hold a general meeting on 18 October to approve the resolutions required for the issue of the new shares.

At 1343 BST, shares in Mpac Group were up 6.51% at 442p.

Reporting by Josh White for Sharecast.com.