ProVen Growth and Income VCT plc Announces Equity Raise at Premium Price
Why we think this is good
The equity raise by ProVen Growth and Income VCT plc is viewed positively, as the new shares were issued at a 9.5% premium to the previous closing price, indicating strong investor demand. The raise size is relatively small, representing only 0.26% dilution, and the funds are likely to be used for general corporate purposes and growth capital, which is a positive use of proceeds. While there may be some short-term selling pressure from the new shares, the overall assessment is that this equity raise is a positive development for the company and its shareholders.
Key Points
- Equity raise of 850,391 new ordinary shares
- Raise priced at 52.68p on average, a 9.5% premium to previous close of 48.10p
- Raise size represents only 0.26% dilution of existing share capital
- Funds likely to be used for general corporate purposes and growth capital
Summary
ProVen Growth and Income VCT plc has announced an equity raise of 850,391 new ordinary shares at an average price of 52.68p, representing a 9.5% premium to the previous closing price of 48.10p. The raise size is relatively small, amounting to only 0.26% dilution of the existing share capital. The funds are likely to be used for general corporate purposes and growth capital, which is a positive use of proceeds. While there may be some short-term selling pressure from the new shares, the premium pricing indicates strong investor demand for the company's shares.