Rump of Galliford rights snapped up

22nd Oct 2009 13:29

Construction and housebuilding group Galliford Try received a reasonable response from shareholders to its £125.6m rights issue. Acceptances were received in respect of 91.54% of the shares offered. The rump of the rights issue shares has been placed in the market at 350p per share, a premium of 65p over the rights issue price.The net proceeds from the sale of the rump will be distributed to those shareholders who elected not to take up their rights.The funds from the rights issue will be used to finance Galliford's expansion strategy. The loss making housebuilder said in September it would acquire land to develop homes in both the private and affordable housing markets, enabling it to increase its market share as trading conditions improve.