Taylor Wimpey will this week launch a campaign among institutional investors to broaden its shareholder base in preparation for a future capital-raising.
The embattled housebuilder, which last week reported a collapse in interim profits, has been told by current investors that a range of new shareholders are needed in ordered to successfully complete a potential fund raising. As well as current shareholders, TaylorWimpey’s management has also lined up a series of meetings with other institutions in order to persuade them to invest.
One big investor said: 'The last fundraising failed because the investor base was too narrow. It’s clear the company will need some cash at some stage and if it is going to stand a chance of getting such a capital raising away then it needs the strength of more shareholders.'