Bovis Homes hopes to raise £60million with share issue

Bovis Homes, one of the largest property builders in the UK, is ready to release 12.1 million ordinary shares in order to raise £60million for new land aquistions. The placing represents 10% of the firm's share capital and will be launched today.

Bovis added that it had seen a 92% increase in private sales over the same period and was well positioned within the housebuilding sector to take advantage of an increasing number of short to medium term opportunities to invest in residential land assets.

The housebuilder said the placing will be used to buy residential land assets for development, with Deutsche Bank and RBS Hoare Govett Ltd acting as joint book-runners.

"The proposed placing will provide Bovis Homes with further financial flexibility to take advantage of attractive opportunities in the short to medium term to acquire land for development as such opportunities arise," it said in a statement.