Impax Environmental Markets PLC (LON:IEM) is seeking permission to continue selling new shares at a premium to net asset value, saying it has had “considerable success in stimulating demand” for its shares so far.
After gaining shareholder approval in December to sell 19.9mln ordinary shares, equating to 10% of its issued share capital at the time, up until the 2020 annual meeting in May.
After receiving “unexpectedly strong demand” for the shares, so far 18.18mln shares have been sold.
With the capacity to sell only 2.7mln more shares, the board believes this “will prove insufficient” to satisfy demand and is unanimous in requesting renewed authority to issue a further 11.02mln shares before the May meeting, issuing a circular to shareholders to put this resolution forward at a new special meeting on 24 February.
The board believes that this should yield several benefits, including improving the liquidity in the market for the shares; continuing to operate control over its premium and discount; increasing the size of the company and “thereby spreading operating costs over a larger capital base which should reduce the ongoing charges ratio”; and enhancing the net asset value per share of the existing ordinary shares through share issuance at a premium to the prevailing net asset value per share.