London pubs group Young's & Co has tapped investors for £88.4 million after joining the rush of recent City fundraisings.
The company's new “A” shares were priced at 1,160p, compared with last night's closing level of 1,290p. Retail investors were able to participate through the PrimaryBid platform.
The proceeds will enable Young's to restart investment in its pub estate, as well as strengthen its balance sheet and target “opportunistic acquisitions”.
Young's has seen a cash outflow during the period of Covid-19 pub closures, with net debt now at £227 million compared with its historical average of £152 million.
The shutdown also forced Young's to suspend plans for £36 million of capital expenditure, which it hopes to restart once sites re-open. Young's has 205 managed pubs and 68 tenanted sites, mostly located in London and the South East.
Last night's placing of new shares represented 19.2% of share capital prior to the fundraising.
