The announcement comes as the company moves out of Chapter 11 bankruptcy in the US. Regus has issued 200,000 new shares at 28p a share representing an 18% discount on its 34.375p closing price yesterday. There has been a full take-up of the offer, under-written by KBC Peel Hunt, with new shareholders including 28 UK institutions.
Roughly half of the money raised will be used to pay off the company's US creditors rather than a payment in shares as originally intended. The remainder of the cash will be used to help take the company back into profitability and prepare for the resumption of growth.
Regus chief executive Mark Dixon will now own less than 50% of the company. He said: "We are pleased to be exiting Chapter 11 on schedule and today's fully underwritten fundraising adds further strength to our balance sheet while widening our shareholder base with the introduction of more than 20 new, high-quality institutional investors."
The company used Chapter 11 legislation, designed to protect bankrupt firms from their creditors, in January, after Regus got into financial difficulties following over-expansion in the US and a number of unprofitable rent agreements on the west coast.
In another development venture capitalist Indigo Capital has confirmed that it is no longer interested in taking over Regus.
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