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BB Healthcare Trust PLC

BB Healthcare looking to raise money to take advantage of recent market sell-off

The trust thinks some companies in the sectors it invests in have been unfairly hit by the global sell-off of late and wants to raise some extra cash to allow it to take advantage of this

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Investors have until the end of the month to subscribe for more shares

BB Healthcare Trust PLC (LON:BBH) is looking to raise more money to take advantage of the recent sell-off in global equities.

Mounting trade war tensions between the US and China, Brexit negotiations and political and economic instability in Europe have seen investors withdraw their money from equity markets, which have repeatedly fresh highs over the past year.

But BB Healthcare thinks the sectors it invests in have been ‘disproportionately impacted’ by the correction, especially smaller growth stocks.

As a result, it wants investors to arm it with more funds so that it can take advantage of the “compelling opportunity” created by the pull-back and add some good companies which it reckons have been unfairly hit of late.

READ: BB Healthcare continues to deliver despite uncertainty

The extra cash should also improve the liquidity of its stock as well as the company’s “marketability”, BB added.

“Recent trading has been very challenging, driven by macro factors that we see as being of little concern to the company's strategy,” said chairman Justin Stebbing.

“As such, we feel current market conditions offer a compelling opportunity to deploy additional capital, which will broaden the investor base and improve marketability.”

He added: “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.”

Investors have until the end of the month to apply for new shares, which will be issued at a 2% premium to the company’s net asset value.

Shares were untraded at 134.5p early on Monday morning.

Quick facts: BB Healthcare Trust PLC

Price: £1.29

Market: LSE
Market Cap: £552.9 m
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