U.K. Finance Split on Case for Extending Crisis Capital Measures

(Bloomberg) — U.K. bankers and investors are split on whether emergency measures that are making it easier for companies to raise much-needed capital during the coronavirus crisis should be extended beyond the summer.

Financial standard-setters recommended in early April that shareholders support U.K.-listed companies that want to sell as much as 20% in new stock — double the usual ceiling — to ease themselves through the pandemic.

U.K.-listed companies including Informa Plc, Compass Group Plc and Asos Plc have sold 14.4 billion pounds ($18.7 billion) in additional equity since then, according to data compiled by Bloomberg, a more than threefold increase on the same period in 2019. The 20% cap is due to expire on Sept. 30.

“Long may it continue, as it is a useful tool,” Luke Bordewich, a managing director at Numis Securities Ltd., said in a phone interview. “The increased cap on equity placings to 20% has

Read More