Argan: successful 150 ME capital increase

(CercleFinance.com) - Argan announced today that it has successfully placed 2,027,028 new shares with French and foreign institutional investors.


The new shares will be issued as part of a capital increase with cancellation of shareholders' preferential subscription rights by means of accelerated bookbuilding at a price of 74.0 euros per share, representing a gross amount of 150,000,072 euros.

The proceeds from the operation will be used to accelerate growth, with a targeted investment plan of 380 million euros over the 2024-2026 period.

The Group also intends to carry out a targeted divestment plan reduced to around 180 million euros over the 2024-2026 period (instead of 380 million euros previously), and to accelerate debt reduction, with an expected LTV of 44% at the end of 2024, compared with 48% previously and 49.7% at December 31, 2023.

Argan thus confirms its debt reduction target for the end of 2026, forecasting an LTV of around 38% and a net debt/EBITDA ratio of less than 8x in 2026, and expects recurring net income to grow strongly in the coming years.

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