WHIreland supports CareTech in raising £48m in equity

WHIreland is delighted to have acted as Joint Bookrunner to support CareTech Holdings PLC (AIM:CTH), a leading provider of specialist social care services, in its recently oversubscribed fundraise. The Placing raised a total of £39 million in new equity for the Company, as well as placing out a further £9m in existing shares with new and existing investors at a price of 355 pence per share. The Placing was conducted by way of an accelerated bookbuild.
CareTech intends to use the net proceeds of the fundraise to accelerate the Group’s growth strategy through the funding of its current acquisition pipeline, organic growth projects and further potential bolt-on acquisition opportunities.  

Farouq Sheikh, CareTech’s Executive Chairman, said:
“Our track record of acquisitions and our commitment to providing the highest standards of care mean that we are well placed to accelerate the consolidation of the fragmented market in which we operate. We have already identified a number of acquisition opportunities and it is our intention to use the proceeds of the Placing to fund our acquisition pipeline and to support organic growth initiatives with the objective of delivering double digit growth in underlying earnings.”

Adam Pollock, Head of WHIreland’s Corporate Advisory & Broking division, said:
“We are delighted that WHIreland has been able to help to support CareTech in the next stage of its growth strategy. Providing funding for growth businesses such as CareTech is our key strength and we were extremely pleased with the levels of investor demand seen in this oversubscribed fundraise. ”