M&G Credit Income Investment Trust Raises £469,000 Through Share Placing
Why we think this is good
The equity raise by M&G Credit Income Investment Trust is a positive development, as the small size and modest discount of the raise suggest the company has good access to capital markets and investor appetite for its shares. The raise is to meet ongoing demand rather than out of necessity, which is a further positive sign. While any discount to the prevailing share price can be seen as a negative signal, the small 1.26% discount is relatively modest and unlikely to have a significant dilutive impact on existing shareholders.
Key Points
- M&G Credit Income Investment Trust issued 500,000 new ordinary shares
- Shares were placed at 93.80p, a 1.26% discount to the previous closing price of 95.00p
- Raise amount of £469,000 is relatively small compared to the company's £161.80 million market capitalization
- Purpose of the raise is to meet ongoing demand for the company's existing shares
Summary
M&G Credit Income Investment Trust has issued 500,000 new ordinary shares at a price of 93.80p, representing a 1.26% discount to the previous closing price of 95.00p. The raise amount of £469,000 is relatively small compared to the company's market capitalization of £161.80 million. The purpose of the raise is to meet ongoing demand for the company's existing shares, which is a positive sign. The small size and modest discount of the raise suggest the company has good access to capital markets and investor appetite for its shares.