Picton issue flops – Picton Property Income’s placing, which was announced on 12 June and trailed in its results announcement, has failed to raise its target. The company said it had identified important asset management initiatives “20 separate asset management initiatives… with total costs of approximately GBP15 million“, which it wanted to progress further over the short to medium term. However, the placing raised GBP7.1 million through the issue of 7,551,936 new ordinary shares at a price of 94.5 pence per share.
This failure to meet what was quite a modest target looks at odds with the recent success of LXI’s issue. The company will have to look elsewhere for the money. The chairman said, at the time of the publication of the results in May that “With regard to our planned expenditure, the company is likely to commit to many of these initiatives over the next 12 months with funding provided from a combination of existing debt facilities, selective asset sales or new equity, dependent upon market conditions.”
PCTN : Picton issue flops