London-based self-storage company, Lok ‘n Store Group, announced on Friday that it has successfully raised £20.5 million ($26.1 million) through a placing and retail offer. This amount exceeded their initial target.
The company issued 2.7 million new ordinary shares at a price of 765 pence per share, which is a 9.8% discount to Thursday’s closing price of 848 pence.
Earlier on Thursday, Lok ‘n Store revealed their intention to raise around £18 million through the placing and retail offer, which was carried out through a bookbuild program.
The raised funds will be utilized for the company’s ongoing store opening program, aiding its growth in the under-supplied U.K. self-storage market. With the addition of new stores, Lok ‘n Store aims to increase available space by 37.7%, resulting in further cash flow for future investments and increased distributions to its shareholders.
Chairman Andrew Jacobs expressed his confidence in the company’s expansion plans, stating, “This funding will support the growth of the company in the structurally under-supplied U.K. self-storage market. 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.”