Shares of Doncaster-based plastic piping and ventilation systems firm Polypipe Group rose about 11% on Thursday after it said it raised £96.3 million via the sale of new shares to help fund the acquisition announced on Wednesday of London Topco Limited (ADEY) from mid-market private equity firm LDC and other shareholders for £210 million in cash.

Substantial shareholder Standard Life Aberdeen agreed to acquire 2.55 million of the new shares for £13.1 million.

In a stock exchange statement, Polypipe said: “A total of 18,704,085 new ordinary shares in the capital of the company have been placed by Deutsche Bank AG, London Branch and Numis Securities Limited, acting as joint bookrunners, raising gross proceeds of approximately £96.3 million.

“The placing shares have been issued at a price of 515 pence …

“The placing shares being issued represent, in aggregate, approximately 8.2 per cent. of Polypipe’s issued ordinary share capital prior to the placing.

“The placing price of 515 pence represents a 0.2% per cent. premium to the closing mid-market share price of 514 pence on 10 February 2021.

“Polypipe consulted with a significant number of its major shareholders prior to the placing in order to adhere to the principles of pre-emption through the allocation process.

“The company is pleased by the strong support it has received from its existing shareholders and new investors …”

Polypipe shares rose about 11% to around 570p after Thursday’s announcement.

Polypipe added: “Standard Life Aberdeen is a substantial shareholder in the company for the purposes of the Listing Rules as a result of being entitled to exercise, or to control the exercise of, over 10 per cent. of the votes able to be cast at general meetings of the company.

“It is therefore considered to be a related party for the purposes of Chapter 11 of the Listing Rules.

“Standard Life Aberdeen has agreed to acquire 2,550,000 placing shares in the placing, amounting to a total subscription of approximately £13.1 million under, and on the terms and conditions, of the placing …”