TwentyFour Select Monthly Income Fund Limited Announces Equity Raise

Why we think this is neutral

The equity raise by TwentyFour Select Monthly Income Fund Limited is a relatively small one, with the new shares issued at a modest 0.31% discount to the previous closing price. This suggests reasonable demand for the company's shares and that the raise is not a last resort funding measure. However, any equity raise, even at a small discount, can be seen as a negative signal by the market, and there is a small dilutive impact on existing shareholders. Overall, the impact of this raise is neutral, as the positives and negatives appear to balance out.

Key Points

TwentyFour Select Monthly Income Fund Limited has issued 2,000,000 new ordinary shares
The new shares were priced at 86.13 pence per share, a 0.31% discount to the previous closing price
The raise generated £1,722,600.00 (before costs and expenses)
The purpose of the raise is to satisfy market demand and raise money for investment

Summary

The investment fund has issued new shares to raise £1.7 million, with the shares priced at a small 0.31% discount to the previous closing price.

TwentyFour Select Monthly Income Fund Limited (SMIF) has announced the issue of 2,000,000 new ordinary shares at a price of 86.13 pence per share, raising £1,722,600.00 (before costs and expenses). The new shares were issued at a 0.31% discount to the previous closing price of 86.4000015258789 pence per share. The purpose of the raise is to satisfy market demand and to raise money for investment in accordance with the Company's investment policy. The dilution to existing shareholders from the new shares is relatively small, at around 0.7% of the total shares outstanding.

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