Attention will be focused on CRH shares today to see what the company's registrars, Capita Corporate, will do to correct what seems to have been a massive error in the course of the recent rights issue. The issue for €1.1bn worth of CRH shares was priced at a substantial discount to the current market price. When the registrars calculated the take-up of the issue among existing shareholders, they estimated that there were about 14m shares left over. These shares were sold to new investors.
However, CRH has issued a statement saying that only 5.5m shares were left over. The registrars now have to find over 8m shares to satisfy the new buyers. CRH said that Capita are now considering how best to correct this error which may or may not involve the purchase of CRH shares. However, the shares were placed at €16.50 but they are now worth €18 in the market. It is thought that Capita Corporate themselves may have to make up the shortfall.
