The low-cost housebuilder said broker Liberum will carry out an accelerated bookbuild to place shares at a price of 600p apiece with existing shareholders and other institutional investors.
Gleeson said, as part of the UK government’s decision to suspend building activity from 25 March as part of the coronavirus lockdown, it has fully wound down all its building sites.
Once the epidemic restrictions are lifted, the company believes the sort of low-cost homes and those sold to first-time buyers that it specialises in “will be the segment of the housing market that will recover the fastest”.
With 236 plots practically completed across its 67 active sites, plus a current order book that includes 364 contracts that have exchanged and 500 that are reserved, Gleeson said “there will be a significant opportunity to convert the company’s current pipeline”.
Around £4mln of the new funds will be used to get sub-contractors and key trades ready to restart building, with another £2mln to secure materials.
The remaining £10mln proceeds would be used to purchase and open new sites under contract, with Gleeson saying it was aiming to “satisfy demand for its homes and maximise growth of sales and earnings” by compressing as many as possible of its 22 new sites owned or in planning once COVID-19 restrictions are lifted.