Shares of Manchester-based corporate rescue firm Begbies Traynor Group plc soared about 10% on Friday after it announced raised £22 million through an equity fundraising.

On Thursday, Begbies Traynor had announced the acquisition of David Rubin & Partners, a long-established insolvency practice with offices in London and Guernsey, for a maximum consideration of £25 million.

It said the equity fundraising would “satisfy initial cash consideration for the acquisition and to fund pipeline opportunities and for general corporate purposes.”

On Friday, Begbies Traynor said it issued 9,478,673 vendor placing shares, 9,478,673 cash placing shares and 1,895,735 offer shares at 105.50p per share.

The fundraise was significantly oversubscribed.

“The fundraise shares being issued represent 16.3 per cent. of the existing issued ordinary share capital of the company immediately prior to the fundraise and 13.8 per cent. of the enlarged issued ordinary share capital of the company immediately post the fundraise and acquisition,” said the company.

Begbies Traynor Group executive chairman Ric Traynor said: “We are delighted that both existing and many new investors participated in the fundraise, which was significantly oversubscribed. 

“Our recent acquisitions and organic investments position us well to deliver material growth in our 2021-22 financial year.”