Mobeus Income & Growth VCT Plc Issues New Shares Under Dividend Scheme
Why we think this is good
The equity raise by Mobeus Income & Growth VCT Plc is a relatively small and modestly discounted transaction, which suggests the company has good access to capital and investor appetite. The purpose of the raise, to issue new shares under the company's Dividend Investment Scheme, is a shareholder-friendly move that can help retain capital within the company. While a small discount is still a negative signal, the overall impact of this raise is considered positive given the company's status as a mature investment trust and the lack of any significant funding concerns.
Key Points
- Mobeus Income & Growth VCT Plc issued 523,677 new Ordinary Shares
- New shares issued at 52.43 pence per share, a 4.5% discount to the previous closing price of 50.15 pence
- The raise amount is relatively small, representing a 0.16% dilution of the company's total issued share capital
- The purpose of the raise is to allow shareholders to reinvest their dividends under the company's Dividend Investment Scheme
Summary
Mobeus Income & Growth VCT Plc has announced the issue of 523,677 new Ordinary Shares under the company's Dividend Investment Scheme. The new shares were issued at a price of 52.43 pence per share, representing a 4.5% discount to the previous closing price of 50.15 pence. The raise amount is relatively small, representing a dilution of approximately 0.16% of the company's total issued share capital. The purpose of the raise is to allow shareholders to reinvest their dividends, which is a common practice for investment trusts.