Wetherspoons bars small investors as it taps market

The Bright Helm in Brighton is one of the pubs that Wetherspoons hopes could reopen in June
The Bright Helm in Brighton is one of the pubs that Wetherspoons hopes could reopen in June
ADAM DAVY/PA

JD Wetherspoon last night became the latest company to tap stock market investors after announcing a share placing to raise £141 million.

The placing, representing 15 per cent of the pub company’s existing share capital, is being executed via an accelerated bookbuilding process and is not open to its small shareholders.

The shares are being placed by Investec at 900p a share, a discount of 6 per cent to last night’s close of 957½p. The share price rose by 89p, or 10.3 per cent, during yesterday’s trading session.

Wetherspoons said that the proceeds would be used “to strengthen the company’s balance sheet, working capital and liquidity position during the period of disruption” caused by coronavirus.

It said that, based on the “scenario planning” undertaken,