Compel?s failure to sell all the shares offered in its rights issue should not dampen its acquisitive ardour, according to Societe Generale Strauss Turnbull Securities (SGSTS).
Only about 75 per cent of shares were sold in the issue, which closed on 29 January. It was launched in December to fund Compel?s Hamilton Rentals acquisition.
About 25 per cent of pre-issue shares were held by Compel management, who could not afford to take up their rights, but this holding has been diluted to 15 per cent by the rights issue.
SGSTS analyst John Tyso said: ?I am sure if another suitable business came along they would buy it and launch another rights issue.
?There is a ready appetite for Compel shares, and now they are raising their head above the parapet a bit more they will attract more investors.?
Neville Davis, Compel chairman and CEO, said the firm is continually looking at the market, but has no immediate acquisition plans. ?We have the capability to buy suitable businesses, but that must be backed by strong organic growth.?
Shares rose strongly last week, climbing about 15 points to 182p on Monday morning.
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