UK leasing broker Ultimate Finance Group has raised £1m through a share placing on the Alternative Investment Market (AIM), London Stock Exchange’s small business listing.
Just over 7.46m ordinary shares were issued during the share placing on Friday 27 January at 13.4 pence per ordinary share, a discount of slightly over 5% on the closing price of the previous day.
The placing, which was over-subscribed, was undertaken to strengthen the SME lender’s balance sheet and reduce the group’s gearing ratio, according to a company statement.
Current non-executive directors, Roger McDowell and Matthew Cooper, increased their stake in Ultimate Finance to 2.61% and 1.63% respectively, with the acquisition of additional shares during the placing.
Switzerland-based hedge fund Helium Special Situations Fund also increased its share in the company to 22.09% of the enlarged share capital with the purchase of 1.36m ordinary shares.
Jeremy Coombes, co-founder and chief executive of Ultimate Finance, said: “We are delighted with the level of support received from both new and existing shareholders. The placing strengthens the balance sheet and supports our future growth strategy.”
The move follows the likes of Secure Trust Bank, parent of Moneyway, which secured £25m in capital investment since opening on the AIM.