- Chocolatier Hotel Chocolat announced today the completion of its share placing and PrimaryBid offer, at a discounted placing price of 355 pence per share
- A combined total of 11,267,605 new shares were issued, of which 11,112,913 shares were issued through a share placement and 154,692 through retail subscription on the PrimaryBid platform.
UK-based chocolate maker Hotel Chocolat Group PLC (LON: HOTC)’s shares continued their decline for the second day, reacting to further announcement of the completion of its equity fundraising.
A day after the company announced it was planning to raise a gross amount of £40 million through share placing, which had caused its shares to drop sharply on Thursday as well.
Hotel Chocolat’s (LON: HOTC) share price performance
Hotel Chocolat’s shares were trading at GBX 355.00, down by 1.39 per cent on 23 July, at 07:58 AM GMT+1. Comparatively, the FTSE AIM 100 index, which the company is a constituent of, was trading at 6,054.41, down by 0.20 per cent.
Hotel Chocolat’s shares had closed at GBX 360.00, down by 1.37 per cent on 22 July.
(Image Source: Refinitiv)
Hotel Chocolat’s market cap was at £453.18 million, and its one year returns stood at 27.21 per cent as of 22 July.
Hotel Chocolat’s fundraising results
Hotel Chocolat’s announced the fundraising results of its share placing shares on Friday ahead of the market open.
A total of 11,112,913 placing shares, having a face value of 0.1 pence per share, were placed. The newly issued shares had a placing price of 355 pence per share. Also, retail investors subscribed to a total of 154,692 shares through the PrimaryBid offer platform.
Thus, the number of newly issued placing shares are at a combined total of 11,267,605 through both the institutional share placement and through the PrimaryBid platform retail subscription. The newly issued shares are expected to start trading on AIM from 27 July.
The chocolate manufacturer had announced on Thursday that it aims to raise up to £40 million before expenses through a share placement and PrimaryBid offer for both institutional and retail investors. The placing of shares occurred through an accelerated book building process.
The company had stated on Thursday that the placing price will be at a discounted rate of 2.7 per cent below the closing mid-market price of 365 pence per share as of 21 July, of its existing ordinary shares.
Hotel Chocolat said the funds from the capital raised would be used to increase the company’s sales capacity for a long term basis. It is also expected to be used for aiding in the company’s future growth.