M&G Credit Income Investment Trust Raises Funds 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 priced at a relatively small 1.03% discount to the previous closing price. The raise size is also small compared to the company's market capitalization, suggesting it is not a last resort funding. While the specific purpose of the raise is not explicitly stated, the company notes it is to meet ongoing demand for its shares, which is a neutral factor. Overall, the terms of the raise and the company's financial position indicate this is a measured and well-received transaction that should not significantly impact the share price.
Key Points
- M&G Credit Income Investment Trust has issued 500,000 new ordinary shares
- The new shares were placed at 95.60 pence, a 1.03% discount to the previous closing price of 96.60 pence
- The raise amount is relatively small compared to the company's 156.49M GBp market capitalization
- The purpose of the raise is to meet ongoing demand for the company's existing shares
Summary
M&G Credit Income Investment Trust has announced the issue of 500,000 new ordinary shares at a price of 95.60 pence per share, representing a 1.03% discount to the previous closing price of 96.60 pence. The raise amount of 500,000 shares is relatively small compared to the company's 156.49M GBp market capitalization. The purpose of the raise is stated as being to meet ongoing demand for the company's existing shares, rather than for urgent funding needs. This suggests the raise is a measured and well-received transaction that should not significantly impact the share price.