Costain completes capital raising

17th Mar 2014 16:03

Costain Group has placed 13.45m new shares at 225p each and issued 8.82m shares via an open offer. A further 11.11 shares were issued under a firm placing. The capital raising was carried out to generate funds that will allow the group to take advantage of "the opportunities in its chosen markets" and as such accelerate its medium and long-term growth prospects, it said. Specifically, the funds will be used to demonstrate to customers the group's financial capacity to support the anticipated further increases in contract size and duration, to invest in innovation and technology necessary to enhance the service offering to customers, to finance bid costs associated with a greater number of large scale projects for which the company is in a position to tender and to fund likely increased working capital requirements. The group previously said: "Costain has been transformed and is now one of the UK's leading tier one engineering solutions providers. The group is established in a developing market of a limited number of providers who can deliver the innovative integrated consulting, project delivery and operations and maintenance services increasingly demanded by major customers. "The [capital raising ...] provides us with the opportunity to accelerate our growth in the medium and long-term in rapidly evolving markets in which it is expected that over £400bn will be spent in the next 10 years."NR