PM Capital Global Opportunities Fund Limited Announces Share Placement and Purchase Plan
PM CAPITAL GLOBAL OPPORTUNITIES FUND LIMITED (PGF) Share Update July 2024 Monday 29th
PM Capital Global Opportunities Fund Announces $120 Million Share Placement and Purchase Plan
PM Capital Global Opportunities Fund Limited (ASX: PGF) has announced a significant share placement and purchase plan aimed at raising approximately $120 million. This strategic move is designed to bolster the company's investment capacity and provide shareholders with an opportunity to invest at a discount.
Instant Summary:
- Non-underwritten placement of up to $100 million and share purchase plan of up to $20 million.
- Offer price set at $2.19 per share, a 6.4% discount to the closing price on 29 July 2024.
- New shares will be entitled to the final full-year 2024 dividend, intended to be a minimum of 5.0 cents fully franked.
Details of the Offer
PM Capital Global Opportunities Fund Limited (PGF) has announced a non-underwritten placement of shares to certain wholesale and sophisticated investors to raise up to $100 million. Additionally, a non-underwritten share purchase plan (SPP) will be offered to eligible shareholders to raise up to $20 million. The combined offer aims to raise approximately $120 million.
The offer price for the new shares is set at $2.19 per share, which is equal to the estimated net tangible asset (NTA) per share of the company as of 26 July 2024. This price represents a 6.4% discount to the closing price of $2.34 on 29 July 2024.
Share Purchase Plan
The SPP invites eligible shareholders to apply for up to $30,000 worth of shares. The plan targets raising up to $20 million but maintains flexibility to accept applications exceeding this amount. The new shares issued under the offer will rank equally with existing shares and will be entitled to the final full-year 2024 dividend.
Investment Strategy
Proceeds from the offer will be invested in line with PGF's existing investment strategy, managed by PM Capital Limited. Paul Moore, Chief Investment Officer of PM Capital, expressed excitement about offering both new and existing shareholders the opportunity to invest at a discount and benefit from fully franked dividends.
Financial Year 2024 and 2025 Dividend Guidance
PGF reaffirms its intention to deliver a minimum of a 10.0 cents fully franked dividend for the financial year 2024. With a 5.0 cents interim dividend already paid in April 2024, the full-year dividend is expected to be a minimum of 5.0 cents. Additionally, the company intends to deliver a minimum of 10.0 cents of fully franked dividends in the financial year 2025, achieved through an interim and final dividend of at least 5.0 cents each.
Management and Timetable
The placement will be managed by a consortium of joint lead managers, including E&P Capital Pty Limited and Commonwealth Securities Limited, among others. The SPP offer booklet will be released separately and is expected to be available to eligible shareholders on 9 August 2024. The SPP is scheduled to close on 28 August 2024, with new shares expected to commence trading on 4 September 2024.
The share placement and purchase plan are expected to increase PGF's assets and enhance liquidity, making the company more attractive to investors. The discount offer price may attract new investors and provide existing shareholders an opportunity to increase their holdings without incurring brokerage costs. The anticipated dividends reinforce the company's commitment to delivering shareholder value.
Investor Reaction:
Analysts have noted that the offer provides a strategic opportunity for shareholders to invest at a discount, which could lead to positive investor sentiment. The reaffirmation of dividend guidance for 2024 and 2025 is likely to be well-received, although the non-underwritten nature of the offer introduces some uncertainty regarding the total amount raised.
Conclusion:
Investors should consider participating in the share purchase plan to take advantage of the discounted offer price and the potential for fully franked dividends. Monitoring the final outcomes of the placement and SPP will be crucial in assessing the long-term benefits of this strategic move by PGF.