Invesco Bond Income Plus (BIPS) has raised £25m in the share issue it launched last month.
Although the fund raise expands the £425m investment company by just 6%, the offer was comparatively well supported by private investors attracted by its covered 7% dividend yield.
Over 6.6m shares were bought in the WRAP retail offer, 46% of the total 14.4m issued with the remaining 7.7m shares taken up in a placing to institutional investors.
Of more significance for the company is the approval given by shareholders yesterday for BIPS to continue its steady share issuance programme, up to a further 20% of its market capitalisation, or over 48m shares, in the next 12 months.
As announced this week, the new shares were issued at 173.28p, a 0.75% premium to net asset value.
Our view
James Carthew, head of investment company research at QuotedData, said: “£25m is not a bad result for BIPS and we would expect the trust to continue to grow from here.”
