Quintain is days away from launching a placing and open offer of shares to raise about £100m.
The company yesterday confirmed it was considering an equity raising, which is expected to see investors asked for several times its market capitalisation of £26m. Quintain, whose share price has fallen 95 per cent over the past year, wants new equity to complete its development pipeline as well as to shore up its balance sheet from further drops in the property market.
The group last week agreed an arrangement with its main banks that gave it breathing space against debt covenants and is understood to be making progress in renegotiating other shorter term facilities, with an announcement due imminently.
Financial Times, The Times, Daily Telegraph