Henderson Far East Income Limited Announces Equity Raise
Why we think this is good
The equity raise by Henderson Far East Income Limited is a positive development, as the new shares are being issued at the previous closing price without a significant discount. This indicates strong investor appetite for the company's shares and suggests the raise is not a last resort funding measure. While the specific purpose of the raise is not clearly stated, the relatively small size of the issue compared to the company's market capitalization implies it is likely for general corporate purposes or to fund growth. Overall, the terms of the raise appear favorable for existing shareholders, with minimal dilution expected.
Key Points
- Henderson Far East Income Limited is issuing 465,000 new ordinary shares
- The new shares will be issued at a price of 219.0p per share, which is the same as the previous closing price
- The raise amount is small compared to the company's market capitalization of 382.40M GBP
- The purpose of the raise is not clearly stated, but it is likely for general corporate purposes or to fund growth
Summary
Henderson Far East Income Limited has announced the issuance of 465,000 new ordinary shares at a price of 219.0p per share, which is the same as the previous closing price. The raise amount is relatively small compared to the company's market capitalization, and the lack of a significant discount suggests strong investor appetite for the shares. The purpose of the raise is not explicitly stated, but it is likely for general corporate purposes or to fund growth. The dilution to existing shareholders is expected to be minimal.