Cairn Homes to raise tens of millions of euro through share placement
Irish builder Cairn Homes is to raise tens of millions of euro via a share placement, with the proceeds designed to strengthen its balance sheet and finance the acquisition of new sites.
The company said it intends to place up to 33.7m shares by way of an accelerated book build.
The shares will represent up to 4.9pc of the company’s existing issued share capital. Cairn Homes intends to secure a primary listing on the Irish stockmarket later this year.
It is already listed in London, where it floated in 2015, raising €400m. It has a market capitalisation of just over €1bn.
Its shares are currently changing hands at €1.58.
“The exact number of placing shares to be placed and the price at which the placing shares are to be placed will be determined by the company and the book runners at the close of the book build,” according to Cairn Homes.
The placement is not open to members of the public.
“In less than two years since our IPO (initial Public offering), Cairn Homes has already become a significant provider of quality new homes in Ireland,” said Cairn CEO Michael Stanley.
“We continue to expand and scale our operations and our achievements to date are an endorsement of the talented team that we have assembled. We will be active on our eighth site in the coming weeks and look forward to selling from six of these sites in the autumn selling period, underpinning our 2017 target of selling between 375 and 400 completed units.”
He added: “The Irish economy is the strongest performing economy in Europe, yet the structural supply and demand imbalance in the new homes market remains stark. Irish mortgage market fundamentals continue to strengthen, in particular first time buyer participation, which supports the level of demand we are witnessing for our competitively priced starter homes. We continue to look forward with confidence.”