A group which builds and installs fibre optic infrastructure in towns and cities across the UK is to raise up to £200m through a share sale as it seeks to expand its footprint and reduce the dominance of BT Openreach.
CityFibre, which is listed on AIM, intends to raise a minimum of £185m at 55p per share, fully underwritten by Citigroup, finnCap, Liberum and Macquarie. It also hopes to raise a further £15m through a non-underwritten offer for subscription.
"We are building 'Gigabit Britain', driven by growing demand from internet service providers and their customers to switch to full-fibre infrastructure," said chief executive Greg Mesch.
"Our announcement to enter the residential market is the first step in our vision to bring gigabit connectivity to millions of UK homes and small businesses."
As part of the fundraise, CityFibre has also revealed plans to buy Entanet, a West Midlands-based provider of wholesale communications services, for £29m. It said the deal would "significantly enhance" the company's fibre capability and accelerate its future growth.
"This is about more than just better broadband - this is about future-proofing the digital infrastructure we've all come to rely on at work, at school, at home and in our communities. It's also about stimulating the market, creating jobs and growth.
"The government and Ofcom recognise that investment in alternative fibre networks will catalyse growth in the UK's digital economy as well as reduce the country's reliance on BT Openreach."
CityFibre's fibre metro networks are currently present in 42 UK towns and cities and the group hopes to expand this to 50 by 2020.
Source: https://www.insidermedia.com/insider/national/ultrafast-broadband-specialist-to-raise-200m