Providence Resources has had a 67 per cent take-up of its £5 million rights issue, with a further 10 per cent sold on the market. The company chairman, Dr Brian Hillery, told yesterday's annual general meeting that there were also commitments for the remaining shares.
Of the 164.5 million shares not taken up by shareholders, 52 million shares (10 per cent) were sold on the market at a price of 1 1/8p, a premium of 1/8p per share over the issue price which will be distributed on a pro rata basis to shareholders who did not take up their rights.
Excluding Dr Tony O'Reilly's 42.77 per cent share, which he took up in full in a £2.1 million investment, there was a 43 per cent take-up by ordinary shareholders.
"We thought it would be less than that because it is a very difficult market with the oil price down. We felt we were going to have to sell it to institutions who understood the oil market," the chief executive, Mr Andris Blankenburgs, said.
The remaining 23 per cent will be taken up by institutional investors in Ireland, Britain and the US.
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