PrefInvestor wrote:...Well just to re-inforce your point about these renewable ITs and their penchant for capital raising, UKW have just come out today announcing an open offer at 133p (yesterdays closing price was ~143 !). They reckon that's a 5% discount (more like 6.x% I think) and a 10% uplift on the last reported NAV, but see the RNS for full details ...
Needless to say the shares have dropped by about 2.5% this morning and will likely go lower. A little annoying as an existing holder but not a disaster, at least the dividends are good!
Yup: noticed this - and glad you beat me to reporting it - was having a leisurely breakfast etc
This is what normally happens with the Green Infrastructure share but it is a tad different with this one as the premium to NAV is quite high for the first tranche.
What might happen now is that others will follow this route with a general drop in prices.
If I was a holder of UKW (which I am not as the price was too high) I would have sold first thing this morning in the sure knowledge that I could buy them back - either in the offer or in the market at a lower price.
I might buy in the offer though
with kind regards - BBB