Less than 38% of the shares put up for sale found any takers but the rights issue was fully underwritten.
Kier offered investors a 33 for 50 rights issue of 64,455,707 new shares at 409 pence per new share. When the offer was announced on 30th November 2018, its shares were trading at 752p. After the announcement, the share price tanked to 376p. It closed yesterday at 414p.
The company announced that it had received valid acceptances in respect of 24,276,286 new shares, representing 37.66% of the total number of new shares to be issued. The rights issue was fully underwritten by Numis Securities, Peel Hunt, Citigroup Global Markets, HSBC Bank and Banco Santander. They must now pick up the rest.
Kier will receive the £250m net cash proceeds of the rights issue by 28th December 2018.
Chief executive Haydn Mursell showed no embarrassment at the flop: "Following the completion of the £250m rights issue, Kier enters 2019 with a strong balance sheet which puts us in an excellent competitive position," he said.