Winterflood Securities will act as placing agent, with the placing not being underwritten, while the retail offer will take place on the Winterflood Retail Access Platform (WRAP) for existing retail investors.
JP Morgan Global Growth & Income (JGGI) trust has launched a placing and a retail offer of shares in the fund, it said in a stock exchange notice today (13 February).
The board said the trust has demonstrated "continued strong performance" in 2023 and into 2024, with its shares trading at an average premium to net asset value of around 1.2%, leading to ongoing demand for its shares, with nearly 51 million shares issued over the last 12 months.
JGGI revealed it has been approached by a "large wealth manager", which was not named by the trust, showing interest in its shares.
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As a result, the board decided to undertake a placing to provide new and existing investors the opportunity to purchase shares at a premium to NAV - which will be "modestly lower" than the premium at which the trust normally undertake issuance, it explained.
The new shares will be provided at a 0.6% premium to the last published cum-income NAV per share, expected to be announced on 20 February 2024.
Winterflood Securities will act as placing agent, with the placing not being underwritten, while the retail offer will take place on the Winterflood Retail Access Platform (WRAP) for existing retail investors.
The retail offer will not exceed €8m or the equivalent in GBP, JGGI explained, while the total fundraising will be for up to £40m to ensure the trust has "sufficient capacity to continue its ongoing premium management issuance programme".
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Under the placing, all new shares will grant investors the right to receive all dividends or other distributions.
JGGI will also apply to the Financial Conduct Authority to admit the new shares to the premium listing segment of the official list and to the London Stock Exchange for admission to the main market for listed securities.
According to data from the Association of Investment Companies, JGGI is currently trading at a 1.3% premium.
