Wynnstay raises £10.6m from share placing
Wynnstay, the agricultural supplies group, has raised £10.6 million by selling 1.9 million new shares at 560p each to institutional investors.
The Llansantffraid-based group, which has sites and customers across the region, has been experiencing strong trading supported by buoyant farmgate prices across most categories, which has boosted farmer sentiment and farm investment.
The directors had identified a number of opportunities to accelerate the growth of the Company including redeveloping its site at Calne, Wiltshire,which was bought as part of the Humphrey Feeds acquisition in March, into a modern cirva185,000 metric tonne capacity mill, manufacturing both poultry and ruminant feed.
The Company also has a strong acquisition pipeline, which it is actively assessing.
The share placing was conducted through an accelerated bookbuilding process with Shore Capital acting as nominated adviser, sole bookrunner and sole broker
Gareth Davies, chief executive of Wynnstay Group, said: “We believe that this is an important fundraising for Wynnstay. It will support both the planned redevelopment of the Calne feed facility and assist with potential future acquisitions.
“While there are still challenges with cost inflation and supply chain pressures, sector sentiment remains strong, and the fundraising proceeds will enable us to accelerate growth plans.”
The placing was significantly oversubscribed. The new shares, when issued, will represent approximately nine per cent of the company's issued ordinary share capital.
