Shares of Carlisle-based aviation and energy firm Stobart Group fell 31% on Friday after it announced it completed a placing of shares at 40p to raise £100 million.

The placing price represents a 42% discount to the Thursday closing price of the firm’s shares.

On Friday, Stobart shares fell 31% to around 47p after the announcement.

On Thursday, Stobart Group, which operates London Southend Airport, said it will exit its rail and civil engineering business, focus on aviation, dispose of non-core businesses and “monetise value for shareholders” from its energy business over the next 18 to 24 months. 

On Friday, Stobart Group said: “Following the announcement  on 4 June 2020 of the capital raise, the company announces the successful completion of the bookbuilding process for the firm placing and conditional placing of open offer shares, which has now closed, and subject to the conditions set out … will raise gross proceeds of £100 million at a price of 40 pence per new share …” said Stobart Group.

“Pursuant to the firm placing, the firm placees have agreed to subscribe for 200,046,312 firm placed shares at the offer price. 

“The firm placed shares will represent approximately 32.03 per cent. of the company’s issued ordinary share capital immediately following admission …

“In addition, pursuant to the placing and open offer, the joint bookrunners have placed 49,953,688 open offer shares at the offer price with the conditional placees, subject to clawback to satisfy valid applications by qualifying shareholders under the open offer. 

“The open offer shares will represent approximately 8.0 per cent. of the company’s issued ordinary share capital immediately following admission …”

Stobart Group chairman David Shearer said: “We are delighted to have received support from both our existing shareholders and new investors for our equity issue, which will place the group on a sound financial footing going forwards.

“On behalf of the board, I would like to express my gratitude to those who have provided their support. 

“We look forward to repaying their trust in us by delivering on our strategic objectives in the coming years.”