Henderson Far East Income Limited Announces Equity Raise

Why we think this is neutral

The equity raise by Henderson Far East Income Limited is a relatively small and modestly discounted transaction, suggesting reasonable investor demand for the company's shares. However, the lack of details on the intended use of proceeds is a slight negative, and any equity raise can be seen as a dilution of existing shareholders' interests. Overall, the impact on the share price is likely to be limited.

Key Points

Allotment of 300,000 ordinary shares at 203.5p per share
0.5% discount to previous closing price of 204.5p
Raise represents 0.18% of total issued share capital
Lack of details on intended use of proceeds

Summary

The investment fund has announced a small equity raise at a modest discount, suggesting reasonable investor appetite but lacking details on the intended use of proceeds.

Henderson Far East Income Limited, an investment trust focused on the Asia-Pacific region, has announced the allotment of 300,000 ordinary shares at a price of 203.5p per share, representing a 0.5% discount to the previous closing price of 204.5p. The raise will bring the company's total issued share capital to 170,774,679 shares. While the modest discount and small size of the raise suggest reasonable investor demand, the lack of details on the intended use of proceeds is a slight negative. The impact on the share price is likely to be limited.

PLACING

HFEL