M&G Credit Income Investment Trust Raises £1 Million Through Equity Placing
Why we think this is good
The equity raise by M&G Credit Income Investment Trust is a positive development, as it is being conducted at a small discount of only 0.42% to the previous closing price. The raise size of 1,000,000 shares is relatively small compared to the company's market capitalization, representing limited dilution for existing shareholders. The purpose of the raise is to meet ongoing investor demand, rather than urgent funding needs, which further suggests the company is in a stable financial position.
Key Points
- M&G Credit Income Investment Trust has raised £1 million through an equity placing
- 1,000,000 new ordinary shares issued at 95.60 pence per share, a 0.42% discount to the previous closing price
- Raise size is small relative to the company's £155.55 million market capitalization
- Purpose of the raise is to meet ongoing investor demand, not urgent funding needs
Summary
M&G Credit Income Investment Trust has announced the issuance of 1,000,000 new ordinary shares at a price of 95.60 pence per share, representing a 0.42% discount to the previous closing price of 96.02 pence. The raise amount of £1 million is relatively small compared to the company's £155.55 million market capitalization, suggesting limited dilution for existing shareholders. The purpose of the raise is stated as "to meet ongoing demand for the Company's existing Ordinary Shares", indicating the company is not facing urgent funding needs.