1st May 2014 10:47
LONDON (Alliance News) - Picton Property Income PLC Thursday said it plans to raise around GBP35 million through the issue of 59.3 million shares at 59 pence per share by way of an initial placing and offer.
The company also proposed a 170.0 million share placing programme to fund future acquisitions that support its "investment object and acquisitions criteria".
Picton said the issue price of 59 pence per share under the initial offer represents a premium of 4.7% to the March 31 net asset value of 56.36 pence per share and a discount of 4.5% to the closing price of 61.75 pence per share on Wednesday. The stock was trading at 60.16 pence Thursday morning, down 1.60 pence or 2.6%.
The firm hopes the initial offers will provide it with the additional capital it needs to take advantage of current investment opportunities. Of the GBP33.8 million net proceeds from the initial raise, around 75% is expected to be invested in property acquisitions, while the remainder will be invested in opportunities within the existing portfolio as well as for general corporate purposes.
JP Morgan Cazenove and Oriel Securities Ltd will act as joint bookrunners.
Picton also said it plans to issue up to 170.0 million new shares under a placing programme. The number of new shares available under the placing programme is dependent on the number of new shares issued under the initial offers.
The property firm said the new shares made available pursuant to each subsequent placing will be issued or sold at a price, which will not be less than the prevailing NAV per ordinary share at the time of allotment plus a premium to cover the expenses of such issue.
Following the placing of shares in November 2013, which raised gross proceeds of GBP11.9 million, Picton has made acquisitions of property worth over GBP51 million and the proceeds have been fully utilised.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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