TwentyFour Select Monthly Income Fund Limited Raises £430,650 Through Share Placing
Why we think this is good
The equity raise by TwentyFour Select Monthly Income Fund Limited is a positive development, as the relatively small size of the raise (0.18% of market cap) and the minimal discount of 0.77% to the previous closing price suggest strong investor appetite for the company's shares. The funds raised will be used for growth, which could benefit the company's long-term prospects. While there is a minor dilutive impact on existing shareholders, the overall impact is considered positive given the company's status as a closed-end investment fund.
Key Points
- TwentyFour Select Monthly Income Fund Limited has issued 500,000 new ordinary shares
- The new shares were issued at a price of 86.13 pence per share
- The raise amount was £430,650.00 (before costs and expenses)
- The new shares represent a 0.17% dilution to existing shareholders
Summary
TwentyFour Select Monthly Income Fund Limited (LSE: SMIF) has announced the issue of 500,000 new ordinary shares at a price of 86.13 pence per share, raising £430,650.00 (before costs and expenses) under the Block Listing. The raise amount represents only 0.18% of the company's £245.97 million market cap, and the new shares were issued at a 0.77% discount to the previous closing price of 86.80 pence. The funds will be used to satisfy market demand and for investment in accordance with the company's investment policy.