Kier looks to shareholders to raise capital
By Sarah Wood | 30th November 2018
Construction firm, Kier, is launching a rights issue in a bid to raise £264m to pay down debts.
The company, which has just finished work on Gloucester bus station and is the main contractor on the county council's building works, is set to offer shares being to existing shareholders at a discount, to raise funds, as reported by Construction Enquirer.
The contractor confirmed the move in a Stock Exchange announcement this afternoon (Friday), which saw its share price fall 15 per cent.
Kier said it needs the money because banks are becoming nervous of the construction industry, and subcontractors need to be paid quicker. This has led to lower confidence among stakeholders.
It said its net debt as at 31st October was £624m and the rights issues will put in a better position to continue to win new business.
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