M&G Credit Income Investment Trust Raises £720,000 Through Share Placing
Why we think this is good
The equity raise by M&G Credit Income Investment Trust is a relatively positive development. The raise size is small at 750,000 shares, representing only 0.40% dilution, and the 0.10% discount to the previous closing price is modest, suggesting reasonable investor demand. The purpose of the raise is to support ongoing growth rather than out of necessity, which is a positive sign. While there are some minor potential negatives around short-term share price pressure and future funding needs, the overall impact is likely to be good for the company and its shareholders.
Key Points
- M&G Credit Income Investment Trust issued 750,000 new ordinary shares
- The new shares were placed at a price of 96.10 pence per share
- The placing price represents a 0.10% discount to the previous closing price of 95.99839782714844 pence
- The raise amount of £720,000 is relatively small compared to the company's £178.36 million market capitalization
Summary
M&G Credit Income Investment Trust has announced the issue of 750,000 new ordinary shares at a price of 96.10 pence per share, representing a 0.10% discount to the previous closing price of 95.99839782714844 pence. The raise amount of £720,000 is relatively small compared to the company's £178.36 million market capitalization, representing only 0.40% dilution. The purpose of the raise is to meet ongoing demand for the company's existing shares, which is a positive sign indicating the company is not raising capital out of necessity but to support growth.