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LONDON (Alliance News) - BB Healthcare Trust PLC on Monday said it intends to launch an equity fundraising following a decline in net asset value per share.
The investment company said its net asset value per share as at the end of October stood at 128.81 pence, while the closing share price was 129.0p.
Shares in BB Healthcare were trading 1.5% higher on the day Monday at 136.50 pence each.
The company noted that since initial public offering, its shares have traded at an average premium to NAV of 1.7%.
BB Healthcare said it issued 57.4 million shares so far in 2018, raising GBP77.5 million. The company plans to issue a maximum of further 345 million shares. BB Healthcare said it will provide more details in the prospectus, which is expected to be published shortly.
The issue price per share of any shares issued pursuant to the placing or offer for subscription will be at a premium of 2% to the unaudited net asset value per share on the day that the placing closes, which is expected to be November 28.
The company believes that a further increase in its size should improve liquidity in the market for its shares and enhance the marketability of the company, resulting in a broader investor base and spreading fixed costs over a larger capital base.
"Recent trading has been very challenging, driven by macro factors that we see as being of little concern to the company's strategy. As such, we feel current market conditions offer a compelling opportunity to deploy additional capital, which will broaden the investor base and improve marketability," said Chairman Justin Stebbing.
"Valuations now look very attractive in a number of healthcare sub-sectors and the need for healthcare products and services will continue to grow into the foreseeable future," added Stebbing.