Capital Drilling says a secondary placing of 25,500,000 existing ordinary shares at 48p apiece by certain directors and founding shareholders has been completed. The shares represent approximately 18.9% of the company's issued share capital.
Chief executive Mark Parsons said: "Over the last year Capital Drilling has seen a significant improvement in its core business which has in turn generated significant demand from a range of investors for equity in the company.
"In recognition of that demand the directors have reduced their collective holding from 70% to 51% through the Placing to a combination of existing and new shareholders.
"The completion of this Placing has simultaneously broadened our shareholder base, satisfied significant market demand, increased share liquidity, whilst retaining a substantial stake in the company for the existing management team.
"Capital Drilling is pleased by the positive response from our new and existing shareholders to the Placing and we look forward to continuing to generate returns for our broader shareholder base."
Chairman Jamie Boyton added: "The founders of Capital Drilling are pleased to have facilitated the entry of some excellent institutions onto our share register.
"The board and management teams are committed to retaining a significant stake in the company, aligning our interests entirely with all of our shareholders, and we look forward to making further progress in growing the business, in an improving market for our drilling services."
At 2:16pm: (LON:CAPD) Capital Drilling Ltd share price was -1.75p at 49.25p