abrdn Global Infrastructure Income Fund estimates its rights offer will raise about $70 million before expenses, giving the listed fund more capital for infrastructure investments as final subscriptions are processed. In an Oct. 16 filing with the Securities and Exchange Commission, the fund put the preliminary tally at about 3,582,068 shares and set the final subscription price at $19.28 per share. The count includes shares tied to notices of guaranteed delivery. Both the count and proceeds could change as payments arrive and subscription processing concludes.
The offer opened Sept. 21 and ended at 5 p.m. ET Oct. 15, making as many as 10,545,755 shares available. Investors who held shares on the record date received one transferable right for each share they owned; three rights allowed the purchase of one additional share. The fund set the $19.28 price at 92.5% of the average closing market price over the five trading sessions through Oct. 15, subject to a minimum of 92.5% of net asset value per share at that day's close.
The prospectus identified utilities, power infrastructure, energy-transition assets and projects supporting electricity needs from artificial intelligence and data centers as targets for the net proceeds. It projected that substantially all of the money would be invested within 30 days of the offer's completion. The board presented the capital raise as a way to expand the money available for investment, while the advisers said new capital could help the fund pursue opportunities without selling existing holdings. The fund describes itself as a diversified closed-end vehicle investing in public and private infrastructure worldwide, with an emphasis on current income in its total-return objective.
Investors who did not subscribe could transfer their rights, although the prospectus said an active market might not develop and offered no assurance about a sale price. It said the offer's expenses would reduce net asset value for all common shareholders, whether or not they participated. In a hypothetical full-exercise scenario, the prospectus used an estimated $19.47 subscription price and $21.23 net asset value as of Sept. 16 to model a possible $0.62-per-share decline, or 2.93%. It said actual dilution could not yet be determined and would fall more heavily on shareholders who did not exercise their rights. Because adviser fees are based on managed assets, the prospectus identified an inherent conflict in the advisers' recommendation if the offer increased those assets.
The fund expects to issue the shares on or about Oct. 22 after receiving shareholder payments.
