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Acorn Income Fund (AIF) new share placing

Closed-end funds and OEICs
StanBowles
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Acorn Income Fund (AIF) new share placing

#10174

Postby StanBowles » November 29th, 2016, 8:20 pm

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?

ADrunkenMarcus
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Re: Acorn Income Fund (AIF) new share placing

#11503

Postby ADrunkenMarcus » December 3rd, 2016, 12:41 pm

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.

StanBowles
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Joined: November 6th, 2016, 8:17 pm
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Re: Acorn Income Fund (AIF) new share placing

#12051

Postby StanBowles » December 5th, 2016, 1:16 pm

No answer yet. Is anybody out there who can help?

ADrunkenMarcus
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Re: Acorn Income Fund (AIF) new share placing

#12078

Postby ADrunkenMarcus » December 5th, 2016, 1:37 pm

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.


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