Kier shareholders have taken up just 38% of the new shares issued by the contractor as part of a £264m rights issue aimed at paying down its debt, amid signs of faltering confidence in the sector.
Nonetheless, Kier will still receive £250m net cash proceeds for the rights issue because it was fully underwritten by institutional investors.
Now the institutions that backed the rights issue – reported by Sky News to include Citi, HSBC and Santander as well as brokers Peel Hunt and Numis Securities – will have to stump up for the rest of the new shares themselves.
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