M&G Credit Income Investment Trust Raises £950k Through Share Placing
Why we think this is good
The equity raise by M&G Credit Income Investment Trust appears to be a positive development. The raise is relatively small at 1,000,000 shares, representing only a 0.26% discount to the previous closing price. This suggests strong investor demand for the company's shares and is not indicative of a last resort funding measure. The purpose of the raise is to meet ongoing demand, rather than for urgent funding needs. Overall, the terms of the raise and the company's rationale indicate a healthy financial position and investor confidence.
Key Points
- M&G Credit Income Investment Trust issued 1,000,000 new ordinary shares
- The new shares were placed at 95.30 pence per share, a 0.26% discount to the previous closing price of 95.55 pence
- The purpose of the raise is to meet ongoing demand for the company's existing shares
Summary
M&G Credit Income Investment Trust has issued 1,000,000 new ordinary shares at a price of 95.30 pence per share, representing a 0.26% discount to the previous closing price of 95.55 pence. The purpose of the raise is to meet ongoing demand for the company's existing shares. The small size of the raise (1,000,000 shares) relative to the company's £166.48 million market cap, and the minimal discount to the previous closing price, suggest strong investor appetite and a healthy financial position for the trust.