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Acorn Income Fund (AIF) new share placing
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- Joined: November 6th, 2016, 8:17 pm
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Acorn Income Fund (AIF) new share placing
AIF has been on my radar for a while and I see they are proposing a new share placing. But I am puzzled. The company says: "the Initial Issue Price per New Ordinary Share will be determined by the Company as the price equal to the cum-income Net Asset Value per Ordinary Share on the Calculation Date plus a 1 per cent. premium." The current cum-income NAV is 389.95p yet the share price is at discount to this and stands at around 352p. Given this, why would anyone buy in the placing when the ordinary shares are cheaper in the market? I am sure I have missed something as I pored over the prospectus but I can't, for example, see any reference to a 'conversion calculation' for the new shares or anything else that would answer my query. Could any wiser fools enlighten me?
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- Lemon Quarter
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Re: Acorn Income Fund (AIF) new share placing
I hold AIF, but I had not even noticed there was going to be a new share placing. Did anyone come up with an answer privately?
Best wishes
Mark.
Best wishes
Mark.
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- Posts: 9
- Joined: November 6th, 2016, 8:17 pm
- Been thanked: 1 time
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- Lemon Quarter
- Posts: 1584
- Joined: November 5th, 2016, 11:16 am
- Has thanked: 672 times
- Been thanked: 479 times
Re: Acorn Income Fund (AIF) new share placing
it could always be worth writing to them for clarity. It could be something as simple as a typing error in the documentation.
Best wishes
Mark.
Best wishes
Mark.
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