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NORTHBRIDGE INDUSTRIAL SERVICES (AIM:NBI) – an AIM company takes a different route to raising
Posted 12/06/09
Northbridge Industrial Services, the AIM quoted industrial services and rental group, probably hasn’t endeared itself to its broker with today’s announcement to raise up to £2m by way of an Open Offer.
The ‘traditional’ route for AIM companies to raise money has been by means of a private placement under the expert guidance of its broker, who also secures a nice fee in the process!
Northbridge needs the money to expand its existing hire fleet which is probably being stretched as a result of the growth in the Middle East.
The pricing is at 110 pence per share, a 9% discount to the current price, and the company has already received irrevocable commitments from its largest shareholder, Western Selection and certain Directors, to subscribe for 52.7% of the Open Offer Shares. So it looks encouraging, though hardly a done deal!
Northbridge will probably save a good deal of money in raising funds in this way and private shareholders from all quarters will also be able to participate. It’s not a big raise and the group has performed well since coming to AIM in 2006, so it’s in a good position to go on its own in this way.
Could this be a sign of things to come, with AIM’s minnows abandoning their brokers and going the Open Offer route in search of further funding?
I’m not entirely convinced it’s the right way to go!
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