AGRICULTURAL SUPPLIER Wynnstay Group is raising £1.5m through a share issue as part of its five-year strategy to almost double annual turnover to £150m.
The cash will be used to provide extra working capital, finance acquisitions and to fund admission to the Alternative Investment Market, the junior share-dealing service aimed mainly at small companies.
Wynnstay is placing 789,000 ordinary shares at 190p/share in the City to raise the cash and the company’s profile.
This, plus a further 8m shares mainly held by farmers, will give a group market capitalisation of £16.5m when listed next Monday (May 24).
The move to AIM is seen as a key move to drive the business forward by attracting more institutional investors, said managing director Bernard Harris.
“We have ambitious growth plans for the group over the next five years. We believe we are well placed to grow both organically and by acquisition.”
The Powys, Wales-based business has three trading divisions, arable, fed and stores, and has interests in five other businesses. It operates in Wales, the Welsh borders, the midlands and Staffs.