Stock Markets July 28, 2026 01:04 PM

Likewise Group launches £29.2m equity raise to fund Corby distribution hub

Planned placing, subscriptions and retail offer to help buy 60,000 sq ft freehold and bolster logistics ahead of £300m revenue target

By Nina Shah
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Likewise Group plc has proposed an equity raise of up to about £29.2 million at 28.5 pence per share to help finance the acquisition of a 60,000 square foot freehold high-bay distribution facility in Corby for £9.5 million, and to strengthen the company’s distribution network as it pursues group revenue of £300 million. The transaction structure includes an accelerated placing, subscriptions and a retail offer, alongside a package of bank facilities from National Westminster Bank Plc.

Likewise Group launches £29.2m equity raise to fund Corby distribution hub
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Key Points

  • Likewise Group has proposed an equity raise of up to approximately £29.2 million at 28.5 pence per share to support a planned acquisition and expand distribution capacity - impacts companies in commercial real estate, logistics and retail distribution.
  • The company is in late-stage talks to acquire a 60,000 sq ft freehold, high-bay distribution facility in Corby for £9.5 million (including stamp duty), which would become its fifth distribution hub - relevant to the industrial property and supply-chain sectors.
  • Funding will combine equity proceeds (placing, subscriptions, retail offer) and roughly £9.0 million of bank facilities from National Westminster Bank Plc, showing a mixed funding approach that affects the banking and corporate finance sectors.

Likewise Group plc announced on Tuesday a planned equity fundraising designed to generate up to approximately £29.2 million at an issue price of 28.5 pence a share. The UK flooring distributor said the capital will be used to support the planned purchase of a new distribution facility and to reinforce the group’s logistics platform.

The group is in advanced talks to buy a 60,000 square foot freehold, high-bay distribution facility in Corby, England, from PBBE Corby B.V. for a total consideration of £9.5 million, inclusive of stamp duty. If completed, the site would become Likewise Floors’ fifth distribution hub and form part of the company’s infrastructure to support an aspiration to deliver group revenue of £300 million.

The proposed equity package comprises multiple elements: a firm placing, a conditional placing, a firm subscription, a conditional subscription and a conditional retail offer. The placing component will seek to raise roughly £24.2 million through an accelerated bookbuild that is launching immediately. The subscription leg is expected to bring in about £3.0 million, while the retail offer is targeted to raise up to £2.0 million.

The 28.5 pence issue price equates to a 14.9% discount to the company’s closing share price of 33.5 pence on Tuesday.

Likewise Group said it plans to fund the £9.5 million acquisition cost in part with proceeds from the placing and subscription. In addition to equity, the company intends to obtain approximately £9.0 million of financing from National Westminster Bank Plc, comprising a £7.2 million commercial mortgage facility and a £1.8 million VAT bridging facility. The NatWest facilities have received credit approval, subject to completion of legal documentation.

The retail offer will be hosted through the BookBuild Platform and will remain open for applications until 4:30 p.m. on August 4, 2026. Shareholders are scheduled to vote on the proposals at a general meeting set for 10:00 a.m. on August 14, 2026.

Zeus Capital Limited is acting as nominated adviser and joint bookrunner on the transaction, with Ravenscroft appointed as joint bookrunner. Company management will deliver an investor presentation at 2:00 p.m. on Wednesday.

Terms and timing for the separate placing, subscription and retail offer components were set out by the company in its announcement. The combination of equity issuance and bank facilities outlines the group’s funding mix for the acquisition and signals an immediate focus on expanding physical distribution capacity.

Investors should note the specific timetable for the retail offer and shareholder meeting, and that the NatWest financing remains subject to completion of legal documentation.

Risks

  • Completion risk on the acquisition and related legal documentation - the NatWest credit approval for the £9.0 million facility is subject to legal documentation, posing potential execution risk to the financing package - impacts banking and corporate borrowers.
  • Market and investor reception to the placing and retail offer - the issue price represents a 14.9% discount to the prior closing price, indicating potential dilution or valuation sensitivity that could influence the company’s share performance - impacts equity investors and capital markets.
  • Conditional elements in the fundraising - parts of the raise are conditional (conditional placing, conditional subscription and conditional retail offer), which introduces uncertainty over whether the full targeted proceeds will be secured - relevant to corporate liquidity and working capital planning.

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