The demand for new shares in Kier from existing shareholders has exceeded the amount made available as part of the £241m equity increase. The contractor announced this morning that requests for offering open shares from existing shareholders are equivalent to 110 percent of what will be issued. As a result, the company said, their requests would not be fully met. Existing shareholders were given the option to purchase seven new shares for every eight shares they already owned, which contributed up to £120.6m to Kier’s £241m equity increase. £120.6 million of the remaining shares have been deposited with institutional investors. The entire capital increase will be put to a shareholder vote at a general meeting tomorrow. If passed, the shares will be allowed to trade on Friday, marking the successful completion of the cash call. Kier announced its fundraising plan in May as part of its attempt to overhaul its balance sheet. The company reported net debt of £436 million for the six months to December 30, 2020. The company recently completed the sale of its Kier Living business for £110 million to also help support its finances. The current strong demand for Kier’s shares contrasts with the poor turnout of the £264m of shares the company issued in late 2018. Investors have applied for just 38 per cent of new shares, leaving its financiers to cover the rest. Analysts said the 2021 cash call has “more credibility” than the 2018 effort due to the comprehensive turnaround plan being implemented by the company’s management.