Uranium investment company Yellow Cake PLC (AIM:YCA) has raised £103 million from the placing of new ordinary shares on the AIM market of the London Stock Exchange, it said in a statement today.
The specialist company was set up by Bacchus Capital Advisers to hold physical stores of uranium for the long term.
It said it sold 18.7 million new ordinary shares to new and existing institutional investors, representing about 9.4% of the company’s existing issued ordinary share capital, at a fixed price of £5.50 per share.
Andre Liebenberg, chief executive of Yellow Cake, said the placing was “oversubscribed” partly due to growing interest in uranium as well as the company’s investment proposition.
Uranium prices have surged almost 40% since the start of the year to US$70 per pound, reaching heights not seen since the 2011 Fukushima nuclear accident.
"The recent positive momentum in the uranium price is indicative of the themes we have consistently set out, with supply demand fundamentals and a wider acceptance of the critical role nuclear energy will play in supporting our net zero ambitions both acting as long-term drivers,” said Liebenberg.
He added that spot and term prices “will need to increase further to reach an incentive price which supports the construction of the new greenfield mines” to meet demand.
The joint bookrunners on the placing were Cantor Fitzgerald, Canaccord Genuity (TSX:CF, LSE:CF) and Berenberg, Gossler & Co. Bacchus acted as the company's financial adviser for the placing.