Frenkel Topping Group (FEN ), a professional and financial services firm, has successfully raised £10m in a placing of new shares at a discount of c. 9.7%. Frenkel Topping specialises in personal injuries (PI) and clinical negligence (Clin Neg). The company first announced the placing on 5 July, which has now been oversubscribed and closed.
Proceeds from the fundraising will be used to finance several initiatives. Firstly, Frenkel Topping plans to improve full-service offerings to its clients. Secondly, it wants to consolidate the fragmented pre-settlement market by targeting acquisitions with clear synergies in the PI and Clin Neg sectors.
Thirdly, and relating to the previous point, Frenkel Topping wants to fund three potential future acquisitions, already identified and in the due diligence stages. Fourthly, the company wants to invest in and optimise existing acquisitions in order to capture additional margin, and allow for faster acquisitions in future. Finally, Frenkel Topping will use some of the funds to modernise its IT infrastructure.
Overall, the funds should help the Company accelerate and improve its M&A strategy, following a pattern of consolidations in the financial advice industry.
Richard Fraser, CEO, commented:
"I am delighted that new and existing shareholders have once again supported Frenkel Topping on its ambition of becoming the market leader in the PI & Clin Neg space. The net proceeds of the Placing allows us to continue consolidating the heavily fragmented professional service firms marketplace.
The Board looks forward to building on the momentum gathered since our last fundraise in July 2020 and are already well progressed on a number of potential opportunities. In addition, our investment internally, particularly on IT infrastructure will allows us to capture further margin on existing acquisitions and more easily integrate future M&A."
The £10m before expenses was raised through the placing of 14,285,715 new ordinary shares at 70p/share, representing a discount of approximately 9.7%.
The placing is being undertaken in two tranches. First will be 5,657,800 shares utilising the Company's existing shareholder authorities to issue new shares for cash on a non-preemptive basis. Second will be a further 8,627,915 shares to be issued subject to new shareholder approvals, to be sought at the General Meeting of the Company.
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