The PCF group to raise up to $12 million in share subscriptions, open offer

By Joe Hoppe

PCF Group PLC said on Tuesday that its largest shareholder intended to underwrite the company, raising proceeds of 2.7 million pounds ($3.4 million), and would arrange an open offering to raise up to at 8 million euros ($8.6 million).

The London-listed specialist lender said majority shareholder Somers Ltd., which owns around 64.4% of the company, has indicated its intention to subscribe for 54.9 million new ordinary shares at 5 pence per share. That’s a 41% discount from Monday’s closing price of 8.5 pence.

The subscription shares would represent approximately 21.9% of the company’s existing issued share capital, and if it materializes, Somers’ stake will increase to 73.3%. The shares are expected to be admitted to trading around June 6.

The shareholder also indicated that he would support a further subscription of £1.5 million at the end of June.

PCF said it would also raise additional capital through an open offering, which Somers is not expected to participate in and on the same terms as the underwriting. This will be structured in such a way as to ensure that the interests of the shareholders are not diluted by the subscription, if they exercise their participation rights.

Net proceeds will be used to support growth.

Write to Joe Hoppe at [email protected]