National Grid PLC (LSE:NG.) has received a 91% take up for its £7 billion rights issue, with the shares left unsubscribed to go to the underwriters Barclays and JP Morgan to find buyers or else take them up themselves.
Grid’s fundraising was seen as a bold move by analysts given the seeming lack of appetite for new equities in London.
Uncertainty over the election and big upgrades required for Britain’s creaking electricity network to cope with new demands such as electric vehicles and power-hungry AI data centres were other potential issues.
Heavyweight brokers such as UBS and Citi weighed in with 'buy' recommendations during the ex-rights trading period, but this was not enough to sway all investors.
Another bank, Jefferies, reduced its earnings per share forecast by 14% for the 2025 financial year following the rights issue dilution and was worried about the regulatory uncertainty over the next year.
Grid shares today rose 1.2% to 873p.