Gordon Dadds' shares have plunged by 25% on the stock market today (24 January), after the firm sought a £10m capital injection from investors to help it expand its global footprint.

The firm placed discounted shares at 140p earlier today to seek the capital – a 25% discount on yesterday's closing price of 189p. This afternoon, shares dropped to 142p.

In this morning's announcement to the AIM market, the firm said the aim of the placement was to provide the firm with the financial firepower to acquire businesses with at least £10m in fee income or with a "complimentary international business".

It is targeting acquisitions in countries including Bermuda, China, Gibraltar, Hong Kong, Malta and South Africa, according to its statement to the AIM market this morning.

According to market analysts, the plummeting share values could be attributed to market nervousness around such a discounted share price for a large request for capital.

One analyst said: "The fact that they need to raise that much money is a little suspicious. Investors may be thinking: 'If you want the cash you can have it, but you can have it at this price.'"

Gordon Dadds most recently completed a pre-pack administration takeover of Ince & Co's UK assets for £27.3m. Gordon Dadds made four more acquisitions prior to Ince, having listed on the London AIM market in 2017.