Hercules Site Services PLC announced on Friday it has completed a placing and subscription to the value of £8 million, while its chief executive lowered his stake in a secondary sale.

The Cirencester, England-based labour supplier for the UK infrastructure and construction sectors completed a placing and subscription for 16.2 million new ordinary shares at a price of 49.50 pence, raising gross proceeds of approximately £8 million.

The company said this involved a placement of 12.2 million new ordinary shares to institutional and other investors at 49.50p each, raising approximately £6 million. An additional subscription for 4.0 million shares from a new strategic investor, Wasdell Packaging Ltd, has raised an additional £2 million.

In a secondary sale, Hercules Real Estate Ltd, a company owned by Chief Executive Officer Brusk Korkmaz and his wife, has also sold 6.1 million existing ordinary shares to Wasdell Packaging, for approximately £3.2 million, with shares sold at 49.50p each.

Following this sale and original fundraising, Hercules Real Estate now has a 45% holding in Hercules. The board said this represents a ‘step towards a more appropriate level of shareholding for the CEO and founder of a public company’.

Korkmaz said: ‘We are delighted to have raised these funds from two successful entrepreneurs and institutional investors which will be used to further grow Hercules through both organic expansion and acquisitions, with the aim of driving profitability in the long run.

‘We believe the improving macro-economic environment means that the infrastructure and construction sector will go from strength to strength in the short to medium term, while the long-term outlook for the sector continues to be positive. The company is now well positioned to take full advantage of these encouraging tailwinds.’

Hercules shares were up 5.1% at 52.00p each in London on Friday afternoon.

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