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Income & Growth VCT Announces Equity Issue Under Dividend Investment Scheme

Why we think this is good

The equity raise announced by Income & Growth VCT is a positive development. The raise is relatively small, representing just 0.6% of the company's total issued share capital, and is priced at a 7.4% premium to the previous closing price. This suggests strong investor demand for the company's shares. The purpose of the raise is also shareholder-friendly, as it will facilitate the company's Dividend Investment Scheme, allowing shareholders to reinvest their dividends. Overall, there are no significant negative factors identified in the RNS, and the raise appears to be a routine and well-received corporate action.

Key Points

  • Income & Growth VCT announces issue of 1,953,760 new Ordinary Shares
  • New shares issued at 64.96 pence per share, a 7.4% premium to previous closing price
  • Raise amount represents 0.6% of total issued share capital
  • Purpose is to fund the company's Dividend Investment Scheme

Summary

The venture capital trust has announced a small equity raise at a premium to the previous share price, which will be used to fund its shareholder-friendly Dividend Investment Scheme.

Income & Growth VCT has announced the issue of 1,953,760 new Ordinary Shares under the company's Dividend Investment Scheme. The new shares will be issued at a price of 64.96 pence per share, representing a 7.4% premium to the previous closing price of 60.5 pence. The raise amount is relatively small, representing just 0.6% of the company's total issued share capital. The purpose of the raise is to facilitate the company's Dividend Investment Scheme, allowing shareholders to reinvest their dividends. This is a common and shareholder-friendly practice. Overall, the equity raise appears to be a positive development for the company and its investors.

Key Dates

23 April 2025
New shares to be admitted to trading on the London Stock Exchange
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