Highlights

  • Malvern proposes to raise approximately GBP 2.0 million before expenses.
  • Issue price set at GBX 23 per new Ordinary Share.
  • New shares could represent around 26% of enlarged capital.
  • Retail Offer may raise up to GBP 0.2 million via Bookbuild platform.
  • Directors intend to subscribe for approximately GBP 0.3 million.
  • Nine-month revenue stood at GBP14.1 million, underlying profit at GBP 0.1 million.
  • Completion of fundraising expected around 6 March 2026.

Malvern International plc (LSE:MLVN) has announced a proposed fundraise to generate approximately GBP 2.0 million (before expenses) through a placing, retail offer and potential directors’ subscription. The proceeds are intended primarily to support the development and scaling of four university pathway contracts secured over the past 12 months. The proposed issue price is GBX 23 per Ordinary Share.

Malvern International shares were down 4.29% to GBX 23.45 during the morning session on 17 February 2026. Over the past six months, however, the stock remains up approximately 37.94%.

Fundraising Structure and Pricing

The fundraising comprises up to approximately 8,800,000 new Ordinary Shares at the issue price of GBX 23, representing a discount of around 6% to the closing mid-market price of GBX 24.5 on 16 February 2026. Assuming full take-up, the new shares would account for roughly 26% of the enlarged issued share capital.

The placing is being conducted via an accelerated bookbuild process, with Zeus acting as sole broker. The placing is not underwritten and is not conditional on a minimum amount being raised.

In addition, retail shareholders may participate through a Retail Offer of up to GBP 0.2 million. Certain directors and senior management also intend to subscribe for approximately GBP 0.3 million, subject to regulatory dealing restrictions and the publication of results.

Use of Proceeds and Strategic Focus

The majority of net proceeds will be directed towards expanding and scaling four university pathway contracts won in the past year. Management indicated that the funding would support operational growth initiatives and capacity development linked to these contracts.

Completion of the conditional tranche remains subject to shareholder approval at a General Meeting expected to be held on or around 5 March 2026, with admission of new shares anticipated around 6 March 2026.

Financial Performance

Unaudited management accounts for the nine months ended 30 September 2025 show revenue (excluding agent commission income) of GBP 14.1 million, compared with audited GBP 14.7 million for the year ended 31 December 2024.

Underlying profit for the period is expected to be approximately GBP 0.1 million, compared with a loss of GBP 0.1 million in 2024. However, due to a goodwill write-off related to the Manchester school, the statutory loss is expected to be around GBP 1.3 million.

The audited results for the nine-month period are expected to be announced on or around 25 February 2026, following completion of the fundraising process.

Market Implications of the Fundraise

The proposed capital raise highlights management’s focus on strengthening financial flexibility while advancing recently secured university pathway contracts. Investor focus is likely to centre on the execution of these growth initiatives, upcoming audited results and the company’s ability to translate expanded capacity into sustainable profitability. With the share price showing strong six-month performance despite short-term volatility, market confidence may hinge on operational delivery and balance sheet stability in the coming quarters.

FAQs

Why is Malvern International raising funds?

The company aims to raise approximately £2.0 million to support the scaling and development of four university pathway contracts secured over the past year.

What is the issue price for the new shares?

The proposed issue price is GBX 23 per Ordinary Share, representing a discount to the prior closing mid-market price.

When will the fundraising complete?

Completion is expected around 6 March 2026, subject to shareholder approval at a General Meeting.