Sports retailer JJB Sports has announced that shareholders have approved plans to raise £100m through a placing and open offer of its shares.
The firm announced yesterday that it had received offers for more than 90 per cent of the 400m shares being offered at 25p per share, which was a discount of around 27 per cent on the 34.25p closing price before the offer was announced.
David Stoddart, an analyst at Altium Securities recently switched his recommendation on the stock to a Buy based on the rights issue. He has set a target price on the stock of 39p.
“The offer, which was far larger than previously expected, has been well supported,” he said.
The shares are due to be admitted for trading next Tuesday.