XP Power Ltd on Tuesday said it has raised £43.9 million via a placing of 3.8 million new shares at 1,150 pence per share.

The designer and manufacturer of power controllers said the placing price of 1,150p represents an 11% premium to the closing middle market share price on November 6, the firm said.

Shares in XP Power surged 22% to 1,266.78 on Tuesday morning in London.

The firm said it also launched an offer to retail investors, and has raised £1.5 million via the placing of 130,434 new shares.

The company said the placing and retail offer shares represent 20% of its existing share capital.

The shares are expected to be admitted to trading on Thursday, it noted.

On Monday, the firm said the funds raised through the placing will be used to reduce net debt, improve the company’s liquidity position, refinance capital investments and continue to invest in key areas including research & development.

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