HDD surge to 65p today on news it has placed nearly 4 million or about 7% new shares at 63p in order to raise £2.5M, needed for its new facility and expansion plans in Bicester serving its Airbus customer. This will considerably improve the health of the company balance sheet.
HDD say the placing was significantly over-subscribed. As yet unnamed institutional investors so impressed with company prospects to be happy to pay a sp premium, HDD get signficant funds for nothing, small investors get a strong uptick. Bloomin’ marvellous.
For some reason, having just raised the funds it requires, HDD says it is also exploring asset finance, so maybe it wants to convert some of its capex into finance leases aswell. Which would add cherry to the icing on the cake.