CQS New City High Yield Fund Announces Equity Raise
Why we think this is good
The equity raise announced by CQS New City High Yield Fund is a positive development. The company is issuing new shares at the current market price, indicating strong investor demand for the stock. The dilution to existing shareholders is relatively small, and the funds raised can be used to support the company's growth and development. There are no significant negative factors identified in the RNS announcement.
Key Points
- Issue of 1,000,000 new ordinary shares
- Shares priced at 51.2 pence, in line with previous closing price
- Funds to be raised for general corporate purposes
Summary
CQS New City High Yield Fund Limited has announced the issue of 1,000,000 new ordinary shares at a price of 51.2 pence per share, which is in line with the previous closing price. The new shares will be issued for cash on 12 June 2025, and the company's issued share capital will increase to 611,651,858 ordinary shares. The purpose of the raise is not explicitly stated, but the fact that it is being conducted at the current market price suggests it is likely for general corporate purposes rather than a last resort funding.