PM Capital Global Opportunities Fund Finalizes $135 Million Placement
PM CAPITAL GLOBAL OPPORTUNITIES FUND LIMITED (PGF) Share Update July 2024 Wednesday 31st
PM Capital Global Opportunities Fund Completes $135 Million Placement
PM Capital Global Opportunities Fund Limited (ASX: PGF) has announced the successful completion of its upsized $135 million placement, reflecting strong support from new and existing shareholders.
Instant Summary:
- Successful completion of $135 million placement.
- Placement was upsized due to high demand.
- 61.45 million new shares issued at $2.19 per share.
- Placement price represents a 6.4% discount to the closing price on 29 July 2024.
- Proceeds to be invested in line with existing investment strategy.
Placement Details
PM Capital Global Opportunities Fund Limited (PGF) has successfully completed a $135 million placement, which was upsized due to significant demand from both new and existing shareholders. The placement involved issuing approximately 61.45 million new fully paid ordinary shares at a price of $2.19 per share, utilizing PGF's maximum placement capacity under ASX Listing Rule 7.1.
The offer price of $2.19 per share is equal to the estimated pre-tax Net Tangible Asset (NTA) per share of the company as of 26 July 2024. This represents a 6.4% discount to the closing price of $2.34 on 29 July 2024. The placement is not expected to be dilutive to existing shareholders on a pre-tax NTA per share basis.
Investment Strategy
The proceeds from the placement will be invested in line with PGF's existing investment strategy, managed by PM Capital Limited. The company aims to create long-term wealth through a concentrated portfolio of 25 to 45 global companies that are trading at prices different from their intrinsic values.
Share Purchase Plan (SPP)
In addition to the placement, PGF has announced a non-underwritten follow-on share purchase plan (SPP) targeting to raise up to $20 million. Eligible shareholders will have the opportunity to acquire up to $30,000 worth of new shares at the same price of $2.19 per share. The SPP is scheduled to open on 9 August 2024 and close on 28 August 2024.
Dividend Guidance
New shares issued under the placement will be entitled to receive the anticipated full-year dividend for the financial year 2024, which is expected to be a minimum of 5.0 cents per share, fully franked. This represents an annualized grossed-up fully franked dividend yield of 6.46% per share. The final dividend announcement is expected to be made concurrently with the release of PGF's full-year results on 8 August 2024.
The successful completion of the $135 million placement reflects strong investor confidence in PGF's management and investment strategy. The upsized placement and the non-dilutive nature of the offer price are likely to positively impact the company's stock. The additional capital will enable PGF to further its investment strategy and potentially enhance long-term returns for shareholders.
Investor Reaction:
Analysts are likely to view the successful placement as a positive indicator of investor confidence in PGF. The strong demand for the placement and the non-dilutive pricing are expected to be well-received by the market. Investors will be closely monitoring the company's performance and the utilization of the raised capital.
Conclusion:
Investors should keep an eye on PGF's upcoming full-year results and the final dividend announcement on 8 August 2024. The successful placement and the additional capital raised position PGF well for future growth and long-term returns. Staying informed on PGF's strategic moves and performance will be crucial for making informed investment decisions.