Pembroke VCT Raises £40 Million in Oversubscribed Offer
Why we think this is good
The equity raise by Pembroke VCT is priced at a 6.67% to 10.63% premium to the previous closing price, indicating strong investor demand for the company's shares. The substantial raise of up to £60 million will provide the VCT with significant growth capital to fund its investment activities, which is generally positive. While the dilution for existing shareholders is a concern, the premium pricing and the VCT's regular funding cycle suggest this is a routine capital raise rather than a sign of distress.
Key Points
- Pembroke VCT raised £40 million in an Offer for Subscription
- An over-allotment facility for up to a further £20 million was also included
- The shares were issued at a 6.67% to 10.63% premium to the previous closing price
- The raise will provide the company with substantial growth capital
Summary
Pembroke VCT plc, an investment fund focused on smaller companies, has raised £40 million through an Offer for Subscription, with an over-allotment facility for up to a further £20 million. The shares were issued at a price range of 101.33p to 105.08p per share, representing a 6.67% to 10.63% premium to the previous closing price of 95.00p. The raise will provide the company with significant growth capital to fund its investment activities.