Dialight, a leading lighting company based in the UK, has revealed its intention to raise approximately £10.55 million ($12.9 million) through a discounted placing and retail offer. This capital will be allocated towards the company’s ongoing transformation program.
According to the announcement made on Tuesday, Dialight plans to issue up to 6.6 million new ordinary shares at a price of 159 pence per share. This represents a discount of approximately 9.4% compared to the closing share price of 175.5 pence as of Tuesday. The newly issued shares will constitute approximately 19.99% of the company’s existing share capital.
By raising funds through this initiative, Dialight aims to initiate crucial measures outlined in its transformation plan before the year comes to a close.
To fully execute the transformation plan within the specified timeframe until the end of 2026, Dialight estimates an overall investment of approximately £27.4 million. As part of this plan, the company has set ambitious targets for itself, including reaching a group revenue of around £180 million and maintaining a gross margin of approximately 40% by 2026.
In line with its transformation strategy, Dialight recently announced its intention to divest non-core assets and businesses. By streamlining its operations, the company aims to optimize its funding position and allocate resources toward core activities.