Self-storage group Lok’nStore has raised £20.5m through an oversubscribed share offer to help expand its portfolio.
Chair Andrew Jacobs said: “This funding will support the growth of the company in the structurally undersupplied UK self-storage market.”
The group had gone to the markets seeking £18m.
The funds were raised through the issue of 2,679,739 new Ordinary Shares, at a price of 765p per Ordinary Share, a discount to the current share price of 848p. The Fundraising Shares represent approximately 8.9% of the company’s current issued share capital.
Jacobs added: “Our pipeline will, when fully operational, add 37.7% to available space, which, as those new stores fill up, will generate more cash flow for future growth investment and increased distributions to shareholders.”
The group has been performing strongly over the first half of 2023, as storage space remains in high demand. First half revenues were up by 11.2% of the same period in 2022, with the group expecting revenues to end the year up by around 10.5%.
FinnCap and Peel Hunt were bookrunners for the placing.
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