Taylor Wimpey will not announce any capital raising along with its preliminary results tomorrow, according to people familiar with the company’s plans.
Market rumours at the end of last week suggested that a rights issue to raise at least £100m at 25p a share was imminent.
Any raising of less than £350m is thought to be unlikely, as the beleaguered housebuilder must raise that amount by next July if it is to avoid a 10.5% interest rate on its £1.57bn of net debt.
But raising the full amount will prove difficult. The company’s current market capitalisation is £495m, meaning that a successful raising would severely dilute existing shareholdings.