Retail & consumerRetail
Marks and Spencer Group PLC

Marks and Spencer rights issue receives lukewarm response, but rump placed easily

Never mind eight out of 10 cats ... barely eight out of 10 M&S shareholders wanted new shares, even at a discount

M&S lingerie model
The response to the rights issue was, to use a nineties phrase, "a bit pants"

Struggling retailer Marks and Spencer Group PLC (LON:MKS) saw its shares remain lower on Thursday following a disappointing response to its recent rights issue, although brokers managed to offload the rump left of the cash call fairly easily.

In a statement this morning, the FTSE 100-listed company said around 85.14% of the shares on offer were taken up by shareholders leaving the underwriters to do the thing they are paid for, which is to find buyers for the near 15% or so of shares that existing M&S investors did not want.

READ M&S confirms £600mln rights issue and dividend cut to fund Ocado joint venture

In a subsequent statement, the group added that those underwriters - Morgan Stanley, BNP Paribas, HSBC, and Shore Capital – had procured subscribers for all of the remaining 48,269,255 new ordinary shares, representing approximately 14.86% of the offering, at a price of 211p each.

The shares were offered to M&S shareholders at 185p each on the basis of one new share for every five shares currently held. In late morning trading on Thursday, M&S shares were down 1.9% at 215.10p, easing off earlier lows.

The company launched the £601.3mln rights issue last month to help fund a joint venture with groceries delivery technology specialist Ocado Group plc (LON:OCDO).

 -- Adds rump placing results, updates share price --

Quick facts: Marks and Spencer Group PLC

Price: £1.89

Market: LSE
Market Cap: £3.68 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



Full interview: Northern Minerals reveals talks with US government agencies,...

Northern Minerals Ltd (ASX:NTU) CEO George Bauk tells Proactive he recently met US government agencies, who he says wanted to get a better sense of the Australian company's progress with its dysprosium production, and its strategy going forward. Bauk is currently in New York meeting with...

3 days ago

2 min read