By Joe Hoppe
Dialight said it plans to raise around 10.55 million pounds ($12.9 million) in a discounted placing and retail offer, to provide funds for its transformation program.
The U.K. lighting company said Tuesday that it will place up to 6.6 million new ordinary shares at an issue price of 159 pence a share. The price represents a discount of around 9.4% to its closing share price of 175.5 pence Tuesday, and the new ordinary shares will represent around 19.99% of the company’s existing share capital.
The fundraise will allow the company to start key actions within its transformation plan before the end of the year.
On this accelerated basis, the company said its transformation plan requires an overall investment of around GBP27.4 million over the period to the end of 2026. Reflecting the expected improvement in financial performance, the company has set target of group revenue of around GBP180 million and a gross margin of around 40% for 2026.
Last week, Dialight said it would divest non-core assets and businesses as part of its transformation plan. It said then it had reviewed its funding position to ensure that it can invest in core workstreams.
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