Speedy's Rights Issue succeeds

Speedy Hire has successfully sold over 92% of the new ordinary shares it offered in a £100m Rights Issue. The company was offering 460 million new shares at 23p in an effort to reduce debt which stood at £248m at the end of its financial year in March.

Underwriters Oriel Securities and KBC Peel Hunt will either find buyers on the open market or purchase the remaining 35 million unsold shares.

Speedy’s share price opened at 28p this morning having climbed from a low of 2.9p in January. While this leaves investors in the new shares with an instant profit, the price is still a long way from the high in August 08 when they were just shy of 40p (rebased).