Citygrove, the retail developer-trader headed by David Woolf, is to raise £3.5m by way of a placing of some 1.25m new ordinary shares at 280p a share, against the recent price of the shares in the market of 307p.
Shareholders are to be given the opportunity, through an open offer, to buy the new shares from merchant bank Hill Samuel at the placing price on the basis of two new Citygrove shares for every 11 ordinary shares already held.
The issue has been made to enable the company to retain, at least for the medium term, an interest in the retail and leisure complex it is developing on the outskirts of the Swansea town centre, a 210,000-sq ft project which is letting well.
