Avingtrans (AIM:AVG), the engineering group, confirmed it has raised £21m gross through an oversubscribed placing backed by both existing and new institutional investors, with proceeds earmarked primarily for expanding its Michigan manufacturing facility.
The fundraise is directed at the Hayward Tyler division, which designs and manufactures performance-critical motors and pumps, with management citing known customer demand as the driver for additional capacity in North America.
Non-executive chairman Roger McDowell subscribed approximately £800,000, a signal of board conviction in the growth case.
Chief executive Steve McQuillan said the raise "provides Avingtrans with the resources to accelerate our expansion plans for Hayward Tyler enabling us to invest to satisfy known customer demand," describing the investor support as "further validation of our long-term value creation strategy."
