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GOOD

Law Debenture Corporation Issues New Shares

Why we think this is good

The equity raise by Law Debenture Corporation appears to be a positive development. The raise is at a very small discount of only 0.12% to the previous closing price, suggesting good investor appetite for the company's shares. The relatively small size of the raise, representing just 0.019% dilution, is also a positive sign. While the specific purpose of the raise is not explicitly stated, it does not appear to be a last resort funding, which would be a more concerning scenario. Overall, the details of the raise point to a measured and well-received transaction that should not significantly impact the company's valuation.

Key Points

  • Law Debenture Corporation issued 25,000 new ordinary shares at £8.36 per share
  • The raise price represents a 0.12% discount to the previous closing price of 837 GBp
  • The raise amount is small, equating to 0.019% dilution of existing share capital
  • The company has the ability to issue a further 10,985,000 ordinary shares under its block listing facility

Summary

The financial services provider has issued new shares at a small discount, suggesting strong investor appetite.

The Law Debenture Corporation p.l.c. has issued 25,000 new ordinary shares at a price of £8.36 per share, representing a 0.12% discount to the previous closing price. The raise amount is relatively small, equating to only 0.019% dilution of the existing share capital. The purpose of the raise is not explicitly stated, but it does not appear to be a last resort funding. The company now has the ability to issue a further 10,985,000 ordinary shares under its block listing facility.

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