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
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.