Shares fall in Applegreen after €47m share placing

Shares fell more than 2% in Applegreen as the fuel and forecourt operator raised almost €47m in a placing of more than eight million shares — around 10% of the firm’s issued prior share capital prior to the placing.

Applegreen said the capital raised will be used to further acquisitions and developments in its three key markets of Ireland, the UK and the US.

Chief executive Bob Etchingham said Applegreen was “very pleased with the very strong support” it received from new and existing shareholders.

“The funds raised will ensure Applegreen is well positioned to continue to invest in opportunities for growth across our three markets,” he said.

The firm, which has a market fuel share in Ireland of around 15%, has made big strides into the US and UK markets in recent months.

In July, Applegreen said it had reached agreement to acquire the trade and certain assets of Bob Brandi and Bob Brandi Stores, a forecourt retail operation based in Columbia, South Carolina, for $5.4m (€4.7m).

Applegreen said it will lease long-term from a US real estate investor who bought the property assets of the business for $70m.

There are 42 sites located in or close to the city of Columbia, which is the state capital of South Carolina.

The company has stations in Long Island, New York, as well as New England. Last month, it bought seven sites along the A1 motorway in the UK.

In January, Applegreen paid €15.7m for a 50% stake in the Joint Fuels Terminal in Dublin Port, which it says will allow it to import fuel directly from refineries.

Some 32 sites have been added to Applegreen’s stock in 2017, making 275 in total. Gross profits for the first half of the year were €82m, while revenue is up 21% to €672.5m.