Roofing and insulation contactor weighs options to address plummeting share price

SIG, the roofing and insulation specialist, is considering a rights issue to raise new capital as its share price tumbles.

According to the Daily Telegraph, SIG is looking to raise as much as £300m in a heavily discounted rights issue. Although the Sheffield-based company reports its annual results tomorrow, the newspaper said that talks remain at an early stage.

The collapse of the housing market has hit SIG hard. The UK-based firm's share price has fallen from £13 in early 2007 to a low of 96.5p last week. It had net debts of £710m at the end of December.

SIG made a statement this morning that “it is considering a range of options including a potential equity raising”.