The house builder unveiled plans to raise £80m last month through a share issue that was to be underwritten by Morgan’s own company, Bridgmere Securities.
The extra cash will be used to buy more sites, particularly in London where the housing market remains strong.
Shares were offered at 130p – an 11% premium on the 117p at which they were trading at the time of the announcement.
Today the firm revealed that only 12m shares had been taken up amounting to 26% of the total offered, meaning the remaining 34m will be acquired by Bridgmere Securities.
This will effectively take Morgan’s stake in the company from 29.2% to 40.4%.
Morgan founded Redrow in 1974 and floated it on the stockmarket in the nineties.
Around that time he stepped down but returned to the business three years ago to overseen a turnaround in its fortunes.
