M&G Credit Income Investment Trust Raises £0.48 Million 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 raise size is relatively small compared to the company's total shares outstanding, and the shares are being issued at a minimal 0.21% discount to the previous closing price. This suggests healthy demand for the company's shares and that the raise is not driven by urgent funding needs, but rather to meet ongoing investor demand. While a small discount could put some short-term pressure on the share price, the overall impact is expected to be limited given the small size of the raise.
Key Points
- M&G Credit Income Investment Trust issued 500,000 new ordinary shares
- Shares were placed at 95.60 pence, a 0.21% discount to the previous closing price of 95.80 pence
- The raise amount of £0.48 million is small relative to the company's £169.09 million market capitalization
- The purpose of the raise is to meet ongoing demand for the 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 0.21% discount to the previous closing price of 95.80 pence. The raise amount of £0.48 million is relatively small compared to the company's £169.09 million market capitalization, and the purpose is to meet ongoing demand for the existing shares rather than urgent funding needs. This suggests the equity raise is a positive development for the company and its shareholders.