3i Infra raises £385m amid oversubscription

The UK-listed firm was originally targeting £350m, but ended up bagging ‘the largest fundraise in the UK listed infrastructure space’ since its 2007 IPO.

UK-listed 3i Infrastructure has sailed past its original £350 million ($506 million; €445 million) target to raise a total of £385 million on the London Stock Exchange amid strong investor demand.

A 3i Infrastructure spokesman called it “the largest fundraise in the UK listed infrastructure space since 3i Infrastructure’s IPO in 2007”.

The firm said the “offering was significantly oversubscribed” after it sold over 233 million shares at 165 pence per stock, a 4.8 percent premium to the net asset value per existing ordinary share as at 31 March. Parent company 3i Group and another subsidiary maintain their aggregate 33.96 percent stake in 3i Infrastructure after the raise.

3i Infrastructure plans to use approximately £230 million of the funds raised to pay for its recent investments in Wireless Infrastructure Group and TCR, due to close in June and August respectively. The firm has recently agreed to acquire 50 percent of Brussels-based airport ground support equipment lessor TCR and 36 percent of UK telecom masts owner Wireless Infrastructure Group.

The rest of the proceeds will be used to help fund 3i Infrastructure’s residual deal pipeline, which the firm values at £400 million.