Regal Investment Fund Completes Successful $95.3 Million Placement
RF1 (RF1) Share Update November 2024 Wednesday 20th
Regal Investment Fund Successfully Raises $95.3 Million Through Placement
Regal Investment Fund (ASX: RF1) has announced the successful completion of its placement, raising a total of $95.3 million to enhance its alternative investment strategies.
Instant Summary:
- Raised $95.3 million through placement of new units.
- Placement price set at $3.41 per unit, a 5.3% discount to market price.
- Funds to support long/short equities, private markets, and other strategies.
- Unit Purchase Plan (UPP) to raise an additional $30 million.
Placement Details
The Regal Investment Fund has successfully completed its placement of new units, raising approximately $95.3 million. This placement was closed on November 19, 2024, and was met with strong demand from both existing and new wholesale investors.
The offer price for the new units was set at $3.41, which is equivalent to the estimated net asset value per unit as of November 15, 2024. This price represents a 5.3% discount compared to the closing price of $3.60 on November 18, 2024.
Use of Proceeds
The funds raised will be allocated across the Fund's existing alternative investment strategies, including long/short equities, private markets, real and natural assets, and credit and resources royalties. These strategies are managed by Regal Funds Management, aiming to deliver strong risk-adjusted returns for unitholders.
Upcoming Unit Purchase Plan
In addition to the placement, Regal Investment Fund plans to conduct a Unit Purchase Plan (UPP) for existing eligible unitholders. This plan aims to raise approximately $30 million, with the flexibility to accept more applications. Eligible unitholders can acquire up to $30,000 worth of new units at the same price of $3.41 per unit.
The UPP is scheduled to open on November 25, 2024, and close on December 12, 2024. The final outcome, including any scale-back, will be announced on December 17, 2024.
The successful completion of the placement is likely to bolster investor confidence in the Regal Investment Fund's ability to execute its investment strategies effectively. The additional capital will enable the Fund to enhance its portfolio and potentially improve returns. However, the discount on the placement price might cause a short-term adjustment in the market price of RF1 units.
Investor Reaction:
Analysts are expected to view this development positively, as the successful capital raise indicates strong investor interest and confidence in the Fund's strategies. The UPP provides further opportunities for existing unitholders to increase their investment at a favorable price.
Conclusion:
Investors should consider the potential long-term benefits of the Fund's enhanced investment strategies and the opportunities presented by the UPP. Staying informed about the Fund's performance and strategic decisions will be crucial for making informed investment choices.