30 April 2015 – firm placing and open offer
The company has announced a Firm Placing of 73,684,210 new shares at 28.5p each to raise approximately £21.0m before expenses. As part of this Jabil Circuit Netherlands B.V., an indirectly wholly-owned subsidiary of Jabil Circuit, Inc., Flowgroup’s manufacturing partner,is to invest around£7.4m. There is also an Open Offer wehereby up to 7,043,896 new shares could be issued at 28.5p each to raise an additional £2.0m. Qualifying shareholders are entitled to apply for 1 Offer Share for every 34 share they hold. It is slightly surprising to see funds raised at this stage but the current price continues to represent an attractive entry point. We keep the shares as a STRONG BUY.