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NCYF

-0.31%
NEUTRAL

CQS New City High Yield Fund Announces Equity Raise

Why we think this is neutral

The equity raise announced by CQS New City High Yield Fund is a relatively small one, with 1,250,000 new shares being issued at a modest 0.59% discount to the previous closing price. This suggests reasonable investor appetite for the company's shares and the funds raised can likely be used to support the company's growth and development. However, any equity raise, even a small one, results in some dilution for existing shareholders, which is a negative factor. Overall, the impact of this equity raise is neutral, as the positives and negatives appear to balance out.

Key Points

  • Issue of 1,250,000 new ordinary shares
  • Shares priced at 51.1 pence, a 0.59% discount to previous close of 0.51 pence
  • Raise proceeds to be used for general corporate purposes

Summary

The fund announced a small equity raise of 1.25 million shares at a modest discount, suggesting reasonable investor appetite.

CQS New City High Yield Fund Limited has announced the issue of 1,250,000 new ordinary shares from its blocklisting facility at a price of 51.1 pence per share, representing a 0.59% discount to the previous closing price of 0.51 pence. The new shares will be issued for cash on 11 June 2025, and the company's total issued share capital will increase to 610,651,858 ordinary shares. The purpose of the raise is not explicitly stated, but the funds are likely to be used for general corporate purposes or to support the company's growth and development.

PLACING