Longbridge International has raised almost £2m by issuing new shares to the city.

The financial headhunter said it raised £1.60m by selling 2,000,000 new ordinary shares of 2p each at 80p per share with new and existing investors.

Dealings in the new shares are expected to begin on or around 24 February 2004.

Longbridge said it would use the money to strengthen its balance sheet, clear any outstanding debts and purchase suitable companies.

Frank Varela, managing director of Longbridge, said: “We are delighted with the support that investors have shown. Trading has been improving steadily as the unfavourable economic climate of the last few years reverses. The fund raising places Longbridge in a strong position to take full advantage of this recovery.”

After almost three years of hiring freezes and redundancies, investment banks have begun increasing headcount in a number of sectors, most notably fixed income and corporate finance. Staff increases are also expected in equities, fund management, private banking and custody.