(Alliance News) - Johnson Service Group PLC on Friday raised GBP85 million through a share placing launched earlier in the day, with the cash to go towards improving its liquidity and strengthening its balance sheet.
The textile services provider issued 73.9 million shares at 115 pence each through an accelerated bookbuilding process, for which Investec Bank acted as a sole broker and bookrunner.
The placing price reflects a discount of 20% to the company's closing price of 143.00p on Thursday, and a 7% discount to the 10-day average closing mid-market price of 123.6p.
Shares in Johnson Service Group were 18% lower at 117.60p on Friday in London.
Proceeds from the placing will help shore up the company's financial liquidity in case of a longer lockdown than expected, as well as the risk of lower revenue and new sales after the lockdown is lifted, Johnson Service said.
Several directors took part in the placing. Chief Executive Officer Peter Egan bought 47,826 shares, bringing his total holding to 199,684 shares.
CFO Yvonne Monaghan subscribed for 10,869 shares, and now holds 624,955 shares.
Chair William Shannon bought 30,434 shares in the company, bringing his total holding to 155,434 shares.
"We are pleased by the level of support we have received for this fundraising. These proceeds will improve our liquidity position and further bolster our balance sheet, helping to see us through this downturn and ensuring that we are best-placed to quickly restore our market position as our markets start to improve. We are encouraged by early signs of some customers reopening across both Workwear and HORECA and remain confident in the long-term prospects of the group," Egan said.
Johnson Service now has 443.7 million shares issued overall.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Johnson Service (JSG)