JPMorgan Global Growth & Income PLC Issues Shares from Treasury
Why we think this is good
The equity raise announced by JPMorgan Global Growth & Income PLC is a relatively small, non-dilutive transaction that is likely to be viewed positively by the market. The raise price is only a 0.35% discount to the previous closing price, indicating strong demand for the company's shares. As an investment trust, issuing shares from treasury is a common practice to manage the capital structure and provide liquidity, which is a positive for shareholders.
Key Points
- Issue of 100,000 Ordinary Shares from treasury
- Raise price of 512.20 pence per share, a 0.35% discount to previous closing price of 514 pence
- Purpose is to provide additional liquidity and flexibility in managing the capital structure
- Company policy is to only re-issue shares from treasury at a premium to net asset value
Summary
JPMorgan Global Growth & Income PLC has announced the issue of 100,000 Ordinary Shares from treasury at a price of 512.20 pence per share, representing a 0.35% discount to the previous closing price of 514 pence. The raise amount is relatively small compared to the company's total issued share capital, and the purpose is to provide additional liquidity and flexibility in managing the capital structure. The company's policy of only re-issuing shares from treasury at a premium to net asset value further mitigates any potential dilution concerns for existing shareholders.