Brewer Greene King went to the City today for cash to help it reduce its debts and snap up pubs from owners forced to sell.

It said it will raise £207.5million after expenses by selling nearly 81 million shares at 270p each.

Shares were down 5ªp to 547ªp today to value the company at £744 million.

Greene King chief executive Rooney Anand said the funds raised would help the company to pay off its £1.4 billion debt and establish a war-chest for a buying spree as top-quality pubs are put on the market by struggling landlords.

He said: "The increase in high-quality pubs being put up for sale will deliver chances to make acquisitions.

"At the same time, there is the potential to buy back our debt at discounted levels."

Greene King, which has around 2,500 pubs in the UK, said the rights issue was fully underwritten and shareholders would be offered three new shares for each five they already own.

Greene King also said it is expecting profits for this year of at least £115 million which it added was in line with expectations.