HICL Infrastructure Company, an investment vehicle listed on the London Stock Exchange, has raised £50.7 million (€63.3 million; $85.9 million) through the issue of 37,039,192 ordinary shares.
Announced last Monday, the issue was oversubscribed, the company said in a statement. HICL was initially targeting £50 million.
“The board is very pleased by the strong response from investors to this tap issue, with demand significantly outstripping the amount of stock available,” commented Graham Picken, chairman of HICL.
The net proceeds of the issue will go towards meeting HICL’s funding requirements, the company said. Dealings in the new shares, which were priced at 137p per share, are expected to commence on 23 June 2014.
Following the transaction, HICL's capacity to issue shares by way of tap will be fully utilised, as per existing listing rules. This is due to increase again in early July, however, when the permissible figure will go up to 57,949,019 ordinary shares.
“It is the intention of the board to utilise the tap issuance authority as and when the directors deem appropriate, having regard in particular for the company's net funding requirement at the time,” HICL said.
The transaction follows the firm’s investments in the Bradford Schools BSF (Phase I) project in the UK and in the PPP desalination project in Australia, both completed in May and funded from the group's revolving debt facility. These gave rise to the company’s net funding requirement of around £50 million.
HICL, the shares of which traded at 138.95p on Wednesday afternoon, manages a portfolio of 96 investments.