Empiric Student Property has given a market update following the announcement on 16 October 2024 relating to the launch of a cash placing to institutional and certain other investors.
Placing is the sale of securities to a small number of private investors that is exempt from registration with the Securities and Exchange Commission under Regulation D, as are fixed annuities. This exemption makes a placement a less expensive way for a company to raise capital compared with a public offering.
Empiric Student Property announced the results of the placing and the separate offer to existing retail shareholders via the RetailBook Platform, which has raised aggregate gross proceeds of approximately £56.1m.
A total of 59,686,950 new Ordinary Shares representing approximately 9.9% of the Company’s existing issued Ordinary Share capital have been placed at a price of 93p per Placing Share, raising proceeds of approximately £55.5m (before expenses). Certain directors of the Company have subscribed for new Ordinary Shares at the Placing Price.
Jefferies International Limited and Peel Hunt LLP are acting as joint global co-ordinators and joint bookrunners in connection with the placing.
In addition, a total of 663,714 new ordinary shares representing approximately 0.1% of the company’s existing issued ordinary shares have been placed at the Placing Price, raising proceeds of approximately £0.6m (before expenses).
The offer shares, when issued, will be fully paid and will rank pari passu in all respects with each other and with the existing ordinary shares, including, without limitation, the right to receive all dividends and other distributions declared, made or paid after the date of their issue.
Applications have been made for the admission of the offer shares to the equity shares (commercial companies) category of the official List of the Financial Conduct Authority (FCA) and to trading on the main market for listed securities of the London Stock Exchange plc (LSE).
It is expected that Admission will take place at 8am today (21 October 2024), at which time dealings in the Offer Shares will commence.
The Company’s existing issued share capital consists of 603,506,648 Ordinary Shares each with voting rights. The Company will have 663,857,312 ordinary shares in issue.
“We would like to thank shareholders for their continued support. This placing will allow the business to grow, drive operational margins and create long-term shareholder value.
“There is a fantastic opportunity now ahead of us. We will remain focused on doing what we do best; creating high quality, modern student accommodation serving top-tier universities, incrementally driving value to generate stable, long-term returns for our shareholders.“
Duncan Garrood, CEO, Empiric Student Property
