GCP Asset Backed Income mulls c share issue

GCP Asset Backed Income Fund's board is considering increasing the company's capital base through a pre-emptive offer of c shares at 100p apiece, targeting gross proceeds of £100 million.

The company, which raised gross proceeds of £15.6m through a substantially oversubscribed placing of ordinary shares in November, says the net proceeds of the placing have now been substantially invested or committed for investment.

The board is considering increasing the company's capital base in light of the attractive pipeline of investment opportunities identified by the Investment Manager, Gravis Capital Partners LLP, in the near term, and the premium rating of its shares in the secondary market.

The issue is expected to broaden the company's investor base, improve secondary market liquidity for shareholders, reduce its ongoing charges ratio per ordinary share by providing a larger equity base over which its fixed costs are spread and further diversify its portfolio of investments.

The company is taking legal, tax and financial advice and will make a further announcement in due course.

At 2:17pm: (LON:GABI) Gcp Asset Backed Income Fund Limited Ord Npv share price was +0.25p at 107.25p