Big Yellow Group, the U.K. self-storage company, has successfully raised approximately £110 million ($135.2 million) through a discount share placing and retail offer. The company plans to utilize these funds to expand its store pipeline in London.
Share Placing and Retail Offer
On Wednesday, Big Yellow Group announced that it raised £108.4 million through a share placing at a price of 945 pence per share. This represents a 2.9% discount on the previous day's closing price of 973 pence. Notably, some of the company's executive directors also participated in the placing, contributing £2.85 million towards the funds raised.
Store Expansion Plans
The raised funds will primarily be deployed to build out Big Yellow Group's existing pipeline of stores. The company aims to enhance its capacity in London, which it deems as its strongest market. Furthermore, it plans to leverage the funds to monetize land that it already owns.
Executive Chairman Nicholas Vetch expressed his enthusiasm regarding the announcement, stating, "The net proceeds will allow us to expand capacity in London, our strongest market, and monetize land that we already own."