Duke Roylaty; private investor offer falls short

Duke Royalty (DUKE.L, Market Cap £95m, 47p, 4.6% of JIC Portfolio and 9.5% of JIC Top 10)

Duke announces that it raised £461,500 was raised through the Primary Bid retail offer over the weekend. That is short of the £3.9m it had made available and means that in total, through the Placing and Retail Offer, it has raised £16.55m. It is, therefore, carrying out an open offer to all shareholders to raise £3.45m and reach its £20m target.

It is offering shares; 2 new shares at 44p per share for every 51 currently held.

I will make a decision as to whether to participate nearer the closing date.

Conclusion: It‚Äôs a pity that the retail offer did not receive greater support. Companies might think, ‚Äúwhy¬†bother?‚ÄĚ Timing it over the weekend might not have helped. The share price will inevitably fall this morning on the disappointment. Despite all this, I think it will get its ¬£20m through the¬†take-up¬†of the open offer and through the ‚Äúexcess application facility‚ÄĚ. I look forward to hearing more about the new royalty partner which is currently under a¬†letter¬†of intent. With a prospective March 2020 dividend yield of 6.9%, I think this will be seen as a temporary setback and remain a Happy Holder¬†

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