Why is the Regal Investment (ASX:RF1) share price halted right now?

Let’s find out.
The post Why is the Regal Investment (ASX:RF1) share price halted right now? appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) is having yet another day in the red so far this Wednesday. At the time of writing, the ASX 200 is down by 0.83% to 7,188 points. But one ASX company isn’t joining in that malaise. That would be the Regal Investment Fund (ASX: RF1).

Regal shares last traded at a price of $4.47 a share, right where they closed yesterday’s trading session at. And, at least for now, that’s the price they will stay at.

That’s because Regal Investment is currently in a trading halt. The company released an announcement this morning, gazetting the share price freeze. A few minutes later, we found out why.

Regal Investment Fund share price frozen for capital raising

Yes, the Regal Investment Fund share price is halted today because the company has announced a capital raising program. Regal is seeking to raise up to $97.8 million through a share placement. The placement offer is available for all existing shareholders. It will entitle these shareholders to apply for an additional share for every 3 shares already owned.

This 3-for-1 offer will be available at a share price of $3.79. According to the company, this price represents a 15.2% discount to yesterday’s closing Regal Investment Fund share price of $4.47. It also happens to equal this company’s Net Asset Value (NAV), as of 1 October. This offer has been named the ‘general entitlement offer’ by Regal, with the goal of raising up to $65.8 million.

That contrasts to an additional and concurrent share placement program that will be available for “eligible wholesale and institutional investors”. This program will seek to raise an additional $31.9 million.

Regal tells us that this new money will be earmarked in the following way:

The new capital raised under the Offer will be allocated to existing Regal strategies in line with the Fund’s investment objective, with an aim of further diversifying RF1’s portfolio across private and public alternative investments

About the company

The Regal Investment Fund is an ASX-listed investment trust. According to the company, it seeks to “provide investors with exposure to a selection of alternative investment strategies with the aim of producing attractive risk-adjusted absolute returns over a period of more than five years with limited correlation to equity markets”.

It has managed to book some impressive returns since its inception in June 2019. The Regal Investment Fund has returned an average performance of 39.1% per annum since its inception date, including a return of 45.1% over the past 12 months (to 30 September).

The post Why is the Regal Investment (ASX:RF1) share price halted right now? appeared first on The Motley Fool Australia.

Should you invest $1,000 in the Regal Investment Fund right now?

Before you consider the Regal Investment Fund, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and the Regal Investment Fund wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Leading brokers name 3 ASX shares to sell today

CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration
Here’s why the Austal (ASX:ASB) share price is charging higher today
Here’s why Square stock pulled back 10% in September

Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!